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Breaking News from CNBC's Kate Kelly: New, Higher Capital Restrictions on Banks To Be Announced Tomorrow

Monday, 8 Jul 2013 | 3:10 PM ET

WHEN: TODAY, MONDAY, JULY 8TH

WHERE: CNBC'S "POWER LUNCH"

Following is the unofficial transcript of breaking news from CNBC's Kate Kelly. Following is a link to the breaking news on CNBC.com: http://video.cnbc.com/gallery/?play=1&video=3000181306.All references must be sourced to CNBC.

KATE KELLY: TYLER WE HAVE JUST LEARNED THAT FEDERAL REGULATORS ARE POISED TO ANNOUNCE TOMORROW STRICTER CAPITAL RESTRICTIONS ON U.S. BANKS. AS PART OF A FDIC BACKED PLAN THAT THE FED AND OTHERS HAVE NOW AGREED WITH THESE BANKS ARE GOING TO BE REQUIRED TO HOLD LEVERAGE CONNECTED TO 5% OF THEIR TOTAL ASSETS ON THEIR BALANCE SHEETS AS OPPOSED TO 3% UNDER BASEL THE CURRENT RULES OF PLAY. THIS IS A TOUGHER STANDARD.OTHER REPORTS HAD SUGGESTED IT WOULD BE 6% BUT WE'RE UNDERSTANDING THAT IT'S 5%. AND THIS WILL MAKE IT OSTENSIBLY EASIER FOR BANKS TO WEATHER A STORM IN THE MARKETS IF THEY HAVE RISK ISSUES IN THE FUTURE AND CAPITAL AND CASH ARE NECESSARY TO GET THROUGH THOSE TOUGH TIMES. SUE THIS MAY BE A BUFFER AGAINST THAT OR AT LEAST THAT IS THE HOPE OF THE FDIC AND THE FED.


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