Fed Eases Rules on U.S. Branches

Almost four years after it was first proposed, the Federal Reserve approved easing rules on activities of branches of U.S. banks abroad and for U.S.-based branches of foreign financial institutions.

The new rules, expected to take effect Nov. 20, expands the types of activities permitted for U.S. bank branches overseas, including allowing the branches to underwrite and deal in investment-grade debt of all political subdivisions of foreign governments.

For foreign bank branches in the United States, the new rules streamline the application process for institutions wanting to expand their operations.