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, +0.91% gaining 0.9% and the SPDR S&P Regional Banking ETF KRE, +0.95% up by 1%.

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