WASHINGTON, Sept 14, 2007 (AFP) - The Federal Reserve on Friday approved Bank of America's purchase of LaSalle Bank, a US unit of the Dutch bank ABN Amro, which will expand the reach of the second largest US banking group.

After the Fed announced its approval, Bank of America said it hopes to close the 21-billion-dollar acquisition in early October, noting that the decision marked the final regulatory approval needed for the transaction.

The action followed a decision by the Netherlands' supreme court on July 13 authorizing ABN Amro to sell LaSalle.

NEW YORK, July 26, 2007 (AFP) - Bank of America decided Thursday to drop a lawsuit it filed in a US court against ABN Amro concerning the sale of LaSalle Bank, a US unit of the Dutch bank, a BoA spokesman said.

'We acted because ABN Amro no longer has any legal impediment to the LaSalle transaction and there was no reason for it. It`s procedural,' said Christopher Feeney.

The action followed a decision by the Netherlands`s supreme court on July 13 authorizing ABN Amro to sell LaSalle to Bank of America.