Financial Regulatory Forum

Bank of England, U.S. FDIC to work closely on banks in distress

By Reuters Staff
January 22, 2010

LONDON, Jan 22 (Reuters) – The Bank of England said on Friday it had signed an agreement with the U.S. Federal Deposit Insurance Corporation to work more closely when resolving distressed banks with operations in the U.S. and the UK.

“It makes good sense to develop close relationships with other resolution authorities so that the toolkit and powers now available to us can be applied effectively to large and complex cross-border banks,” BoE Governor Mervyn King said.

FDIC Chair Sheila Bair said greater cooperation would help protect the public from the fall out when big banks with cross border operations get into trouble. (Reporting by Matt Falloon and David Milliken, editing by Mike Peacock)

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