From now on, the Federal Deposit Insurance Corp. will consider short- term foreign-exchange agreements and repurchase agreements on qualified foreign government securities to be "qualified financial contracts."

Such contracts are harder for the agency to repudiate when it is appointed receiver or conservator of a failed bank or thrift. Other qualified contracts already protected by law include certain securities contracts, commodity contracts, forward contracts, repurchase agreements, and swaps.

Limited Time Offer

Save $400 off your subscription. Special offer ends April 30, 2017.

14-Day Free Trial

No credit card required. Complete access to articles, breaking news and industry data.