BASEL
US and EU heading for showdown over global capital rules
The US insists on tough curbs while the EU is pushing for a softer line amid concerns that US commitment to global banking standards might ‘dwindle’ under Trump
US bank regulators are taking a hard line in a showdown with the EU over global capital rules, even as US President Donald Trump begins to pull the country out of international agreements and prepares to roll back financial regulations. The Basel Committee on Banking Supervision talks have bogged down, with no fresh compromise on the table to reconcile US and EU differences on how to stop banks using their own complex models to game capital rules, according to four people familiar with the matter. The US insists on tough curbs, while the EU, whose major banks would take the biggest hit under the new rules, is pushing a softer line. Trump has vowed to roll back financial regulation, and since taking office he has begun to pull the US out of international agreements, such as the Trans-Pacific Partnership trade deal. Trump hasn’t yet turned his attention to the Basel Committee, but there is concern that US commitment to global banking standards may dwindle on his watch. While US bank r...
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