U.S. Regulators Hang Tough at Basel as Trump Rollback Looms
- Negotiators said to have no fresh compromise deal on the table
- U.S. will push hard for consensus on output floor, Petrou says
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U.S. bank regulators are taking a hard line in a showdown with the European Union over global capital rules, even as President Donald Trump begins to pull the country out of international agreements and prepares to roll back financial regulations.
Talks in the Basel Committee on Banking Supervision have bogged down, with no fresh compromise on the table to reconcile U.S. 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 U.S. insists on tough curbs, while the EU, whose major banks would take the biggest hit under the new rules, is pushing a softer line.