Tuesday, September 10, 2013 1:33 pm
FDIC says foreign deposits won't be insured
The Associated Press
The Federal Deposit Insurance Corp. on a 5-0 vote rejected the request from the banking industry seeking to extend the insurance of up to $250,000 to U.S. banks' deposits overseas. The FDIC estimates those deposits are worth about $1 trillion.
If a bank fails that has foreign deposits, the account holders would become creditors of the bank and would have to apply to recover their funds. Generally depositors recover some of their money, ranging from about 40 cents on the dollar up to the full amount.