First Interstate Bancorp’s takeover of troubled Allied...

First Interstate Bancorp’s takeover of troubled Allied Bancshares Inc. of Houston was approved by the Federal Reserve Board. The firms said they hoped to close the deal by year-end. In approving the transaction, the Fed turned aside objections by minorities that the two firms didn’t do enough to make loans available for low-income housing. Allied is the sixth-largest bank holding company in Texas and the 53rd largest in the nation. Los Angeles-based First Interstate agreed in May to buy Allied in a stock swap valued at between $415 million and $450 million.