NEW YORK ( TheStreet) -- Wells Fargo (WFC) shares surged, along with the broader sector, one day after banking regulators agreed on new international capital standards as part of Basel III.
"There is still a lot to be determined from these regulations," Wells Fargo's CFO Howard Atkins said this morning at the Barclays Capital Global Financial Services Conference held in New York.
The new rules set a total common equity requirement of 7%, which is a combination of a minimum Tier 1 common equity of 4.5% as well as a requirement that banks hold a "capital conservation buffer" of 2.5%.
"As you can see, as of June 30, our Tier 1 common of 7.61%. We're growing capital very significantly internally," Atkins said. Wells Fargo has increased its Tier 1 common by approximately 115 basis points year to date. "There will be some deductions from that 7.6%, but we don't really see at this point that this is a big deal for us."That being said, Atkins cautioned that Wells Fargo still needs to get approval from U.S. bank regulators in order to use its capital to benefit shareholders directly. "We still have to get permission from the
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