Item 7.01 Regulation FD Disclosure

On November 20, 2008, International Bancshares Corporation ("IBC") announced that the Treasury Department has preliminarily approved its application to participate in its Capital Purchase Program. Participation is subject to standard terms and conditions. As a result, the Treasury Department intends to purchase $216 million of newly issued senior preferred stock. This preferred stock will carry a 5% coupon for five years, and 9% thereafter. In addition, the Treasury Department will receive warrants to purchase a number of shares of IBC common stock having an aggregate market price equal to 15% of the amount of the senior preferred stock. These warrants will expire in 10 years. The issuance of the preferred stock by IBC is subject to shareholder approval of an amendment to IBC's articles of incorporation authorizing the preferred stock. IBC has called a special meeting of shareholders to be held on December 19, 2008 for the purpose of voting to approve the amendment.

Item 9.01 Financial Statements and Exhibits

Exhibit 99: Press Release of International Bancshares Corporation dated November 20, 2008

"Safe Harbor" statement under the Private Securities Litigation Reform Act of 1995: The statements contained in this report which are not historical facts contain forward-looking information with respect to plans, projections or future performance of IBC and its subsidiaries, the occurrence of which involve certain risks and uncertainties detailed in IBC's filings with the SEC.

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