Breaking News from CNBC's Kate Kelly: New, Higher Capital Restrictions on Banks To Be Announced Tomorrow
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.
With CNBC in the U.S., CNBC in Asia Pacific, CNBC in Europe, Middle East and Africa, CNBC World and CNBC HD , CNBC is the recognized world leader in business news and provides real-time financial market coverage and business information to approximately 390 million homes worldwide, including more than 100 million households in the United States and Canada. CNBC also provides daily business updates to 400 million households across China. The network's 16 live hours a day of business programming in North America (weekdays from 4:00 a.m. - 8:00 p.m. ET) is produced at CNBC's global headquarters in Englewood Cliffs, N.J., and includes reports from CNBC News bureaus worldwide.
CNBC also has a vast portfolio of digital products which deliver real-time financial market news and information across a variety of platforms. These include CNBC.com, the online destination for global business; CNBC PRO, the premium, integrated desktop/mobile service that provides real-time global market data and live access to CNBC global programming; and a suite of CNBC Mobile products including the CNBC Real-Time iPhone and iPad Apps.
Members of the media can receive more information about CNBC and its programming on the NBC Universal Media Village Web site athttp://www.nbcumv.com/mediavillage/networks/cnbc/