Saudi bank planning to shut N.Y. branch.

JEDDAH, Saudi Arabia -- National Commercial Bank of Saudi Arabia said it reached an agreement with the U.S. Federal Reserve aimed at facilitating the closing of the bank's New York branch.

The agreement allows for the branch's excess liquidity to be returned to the head office after depositors are paid.

The NCB agreement to provide the Fed with a $22 million letter of credit, to cover potential penalties, until regulatory investigations are completed.

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