this model under basel ii cannot reduce kapor requirements.large banks are still allowed to affect their own capital requirements. this concerns the reasons indicated and discussing that more with the committee. as we strengthen capital standards we need to make sure we follow suit and i will be glad to work this committee as long as i can which is not much water and our hope my fellow colleagues will maintain strong capital standards in the united states. >> chairman schapiro? >> thank you, members of the committee. i appreciate the opportunity to testify on the house-senate series of the security exchange committee for the financial implications of the wall street reform and consumer protection act. it establishes new reforms that have implications for u.s. companies. the written testimony discusses a number of these reforms as well as the fcc's efforts to effort reform regulators and limit regulatory arbitrage. i would like to focus on over-the-counter derivatives market claim. the derivatives market play has a global notional value of $600

capitol, minimum capitol ratios are set at a level that will represent a significant increase in terms kapor requirements. these new requirements include the creation of a capitol conservation offer above the minimum which is preached will restrict the firm's ability to pay dividends or buy back stock. now at work on how to implement a capital surcharge for the largest and most interconnected financial firms and reached significant progress over the weekend. the basel iii committee is examining how to use contingency in which debt transforms into equity. to further reinforce and internalize the cost of their own failure. the process is raising the quality of capital. the requirements will focus on common equity, excluding other liabilities that did not act as a sufficient offered to absorb losses. there will be strict limits in the capitol calculation on the aggregate contribution of investments in other financial institutions, mortgage servicing rights and deferred tax assets. moreover, increasing the capitol required for trading positions and counterparty credit exposures in derivatives an

capitol, minimum capitol ratios are set at a level that will represent a significant increase in terms kapor requirements. these new requirements include the creation of a capitol conservation offer above the minimum which is preached will restrict the firm's ability to pay dividends or buy back stock. now at work on how to implement a capital surcharge for the largest and most interconnected financial firms and reached significant progress over the weekend. the basel iii committee is examining how to use contingency in which debt transforms into equity. to further reinforce and internalize the cost of their own failure. the process is raising the quality of capital. the requirements will focus on common equity, excluding other liabilities that did not act as a sufficient offered to absorb losses. there will be strict limits in the capitol calculation on the aggregate contribution of investments in other financial institutions, mortgage servicing rights and deferred tax assets. moreover, increasing the capitol required for trading positions and counterparty credit exposures in derivatives an