The Federal Deposit Insurance Corp. is set to adopt a rule today responding to concerns that commercial depositors in the U.K. branches of U.S. banks could be disadvantaged in the event of a lender’s collapse, Bloomberg News reported today. U.K. regulators had expressed concern that domestic depositors to U.S. banks were favored over foreign-based account holders. In response, the FDIC proposed in February that overseas branches of the U.S. companies make deposits payable in either country, giving them greater protection if a bank fails. One of the FDIC’s chief concerns was writing a rule that walls off its deposit-insurance fund from non-U.S. deposits, so that the proposal maintained a clear barrier. The agency’s board will vote on the final version of the rule today.
