FDIC Bars Insurance Coverage For Foreign Deposits

Law360, New York (September 10, 2013, 2:07 PM EDT) -- The Federal Deposit Insurance Corp. on Tuesday said deposits held in foreign branches of U.S. banks would not be covered by the agency's deposit insurance fund, making clear its position that only bank deposits held inside the U.S. are eligible for coverage.

The rule, which finalizes a February proposal, clears up confusion over the effects of new U.K. bank deposit rules on U.S. financial institutions.

The FDIC's board voted to approved the rule, which states that accounts held in U.K. branches of U.S. banks are not...
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