WASHINGTON—U.S. financial regulators on Tuesday closed off the possibility the banking industry could get federal guarantees for roughly $1 trillion in deposits held at foreign branches of U.S. banks.

The Federal Deposit Insurance Corp. finished a rule proposed earlier this year that makes it clear U.S. taxpayers aren't potentially on the hook for deposits held in banks overseas, ensuring the U.S. will not become the world's deposit insurer.

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