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No FDIC Protection for Deposits in Overseas Branches of U.S. Banks

Contact: Saul Brenner; Berdon LLP (New York, New York, USA)

 

Those with deposits in the overseas branches of U.S. banks cannot count on FDIC protection. The FDIC's board of directors approved a regulation¹ clarifying that it does not insure deposits in the foreign branches of U.S. banks.

This move was made in response to a proposal from bank regulators in the United Kingdom (UK). The UK proposal would prohibit non-European banks from accepting deposits in the UK unless their rules treat British depositors the same as depositors in the bank's home country should the bank fail.

¹6714-01-P FDIC 12 C.F.R. Part 330 RIN 3064-AE00

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