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FBN’s Liz MacDonald on the Federal Reserve shocking small banks y asking them to play by the same “capital rules” as large banks.
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He -- bottom line this fed has small banks in an uproar want stand -- play by the same rules as the too big to fail banks but small banks say.
That could put them out of business the bottom line with GMAC.
Yeah what's going on is offenders are saying look you gotta do more it to bolster your capital cushion.
Because -- they've basically found in the financial crisis the banks didn't have a financial cushion.
And -- a lot of felt so even though the Federal Reserve governor Elizabeth duke -- saying wait a second smaller banks -- They're gonna have a hard time she's saying essentially a smaller banks may face operational burdens from.
These capital these new capital rules and there's a lot of money that the third service -- that banks.
To set aside it's going -- tropical -- is going up from 2%.
27%.
Of assets today and that's a big deal for the smaller banks are also facing a lot of regulatory changes and at clamp down on these that they normally charged -- There are also under all the pressure -- to lend especially to small business yeah so yeah we're -- see in a similar Legacy Banks couldn't basically merging.
Or some -- there you know some of these guys have talked to these CEOs of these small banks they say in neck you know what.
We may have to be forced merger -- -- -- a merger partner.
We may have to turn to the FDIC because we may face you know real problems may -- may may -- wonder that it must say those words but that's where they were heading.
Changes timeline when that they -- that yet it's and it changes take effect by 2019.
So that's a long way away.
We don't need basically the lobby groups could be out in force -- this does is say look we are we gonna be exempted billion bucks million dollars in assets rather.
And that ended that we thought plus at that level we're gonna be exempt but you know what data -- everything you know what everybody has to maybe -- -- It's all five then and -- three adjust the capital reserve ratio demands and everybody will be -- veterinary clinic culinary it is out of the -- -- -- you know.
Want to hear their behalf thinking that thank you George eleven.
Breaking news no chance Triple Crown this year I will have another I'll have another scratched from the Belmont Stakes the New York racing association holding a news conference.
And we are hearing this has confirmed that I'll have another is officially retiring.
-- Good for the owners putting of course -- health and best interests ahead of money fame would've been the first Triple Crown had I'll have another wind.
Since the late seventies but it's not going to happen but still watch the Belmont Stakes horse -- -- nonetheless.
Are right it is time for market tickets and every fifteen minutes nickel peddling flat on the -- in York stock exchange the NASDAQ gained some.
