France is main stumbling block to passing rules to stop another financial crisis
London — Global bank regulators have been toiling for a decade on capital rules intended to help prevent another financial crisis. Now they’re within touching distance of a final deal, with one main obstacle standing in their way: France. The US and Europe have long been at loggerheads over measures to stop banks from gaming the capital rules known as Basel III. The US insisted on tough curbs, while Europe, led by Germany and France, pushed a softer line. But while the US and Germany have recently shown a willingness to compromise, France has dug in its heels, according to four people with knowledge of the negotiations. The Basel Committee on Banking Supervision, which sets the capital standards, holds its next meeting on Wednesday and Thursday in Lulea, Sweden. In a letter in May to the Basel committee’s oversight body, the regulator’s chairperson, Stefan Ingves, said the "vast majority" of members supported a compromise proposal on the last big sticking point in Basel III, a so-ca...
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