On June 12, the Federal Deposit Insurance Corporation (FDIC) announced the signing of a memorandum of understanding (MOU) with the Canada Deposit Insurance Corporation (CDIC) that “formalizes and strengthens cross-border cooperation in the event of the failure of a large, complex financial institution operating in both countries.” Several large Canadian banks have significant presences in the United States. The MOU was signed Tuesday evening in Ottawa by CDIC President and CEO Michéle Bourque and FDIC Chairman Martin J. Gruenberg.

The agreement “builds on the existing relationship between the FDIC and CDIC by enhancing and strengthening their consultation and cooperation and exchange of information related to crisis management and contingency planning, both during normal business times and during periods of financial stress.”

For more information, see the Memorandum of Understanding Concerning the Resolution of Insured Depository Institutions and Certain Other Financial Companies with Cross-Border Operations in the United States and Canada.