Analyst sees FDIC rules on long-term debt ‘on the tamer side of expectations’

Jefferies bank analyst Ken Usdin on Wednesday said the Federal Deposit Insurance Co.’s propose requirements on long-term debt for banks of $100 billion or more in assets came in “on the tamer side of expectations.” The long term debt proposal will result in minimal earnings impact with a three-year phase in, Usdin said. Bank stocks mostly shrugged off the FDIC announcement on Tuesday, with Financial Select Sector SPDR
XLF,
+0.14%
gaining 0.9% and the SPDR S&P Regional Banking ETF
KRE,
-0.72%
up by 1%.