Stocks climbed Monday, as banks across the world rallied after global regulators said financial firms have until 2018 to comply with the new Basel III banking capital rules. Art Cashin, director of floor operations at UBS Financial Services, shared his insights.
The market gain is "more a sigh of relief that you’re not going to wind up with 50 Deutsche Banks* coming and taking hundreds of billions of dollars out of the market in a matter of a month or two,” Cashin told CNBC.
“So that strain on the market is not there, in terms of capital-raising immediately,” he said.
Meanwhile, Cashin said if the S&P 500can surpass the 1,114 to 1,117 range, then it has a chance at taking a run at the April highs at around 1,131.
*(See Deutsche Bank CEO Joseph Ackermann's comments on Basel III.)
Scorecard—What He Said:
- Cashin's Previous Appearance on CNBC (Sept. 9, 2010)
More on Banks:
- Basel III 'Irrelevant,' Won't Stop Next Crash: Analyst
- Forget Basel, Financials Will Still Struggle: Charts
- Bank of America: A Play for the Recovery
CNBC Data Pages:
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No immediate information was available for Cashin or his firm.