The FRB tomorrow will release the final U.S. Basel III rules.  At this point, the betting’s even on whether the controversial mortgage provisions will be in or out (we’re betting on out, but not by long odds and will advise clients ASAP tomorrow on the outcome).  Regardless, a close read of the Corker-Warner bill shows one thing:  whatever the U.S. bank rules prove to be, banks won’t meet the new capital requirements for RMBS guarantors allowed access to the USG backstop.

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