If you have a high level character with many good items that you would like a new character to have, start a new game with the new character. Then, load the character with all the items as the second player. Then, drop the desired items on the floor to allow the new character to pick them up. Equip everything and sell off things that are not needed. Then, save the game and restart the Xbox. Play a new game with a new character and load the other new character (that has all the items) as the main character.