LONDON — The Bank of England and Federal Deposit Insurance Corporation announced Friday that they would increase their cooperation in dealing with distressed banks that operate in the U.S. and U.K.

In a joint news release, the bodies said Governor Mervyn King and FDIC Chairman Sheila Bair had signed a memorandum of understanding, which underlined the need for the FDIC and BOE to work closely together with other authorities in the U.S. and the U.K., with the aim of maintaining confidence and systemic stability.

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