US Is Said to Seek Repeal of Basel Rule Twist That Aided BNP

The US is pushing for a change in global bank rules that would increase the burden on some of the euro-region’s largest lenders, setting the stage for a clash with Europe’s most senior bank supervisors.

Officials at the Federal Reserve are seeking to repeal a three-year old decision to treat the euro zone as a single domestic market when assessing banks’ cross-border exposures, according to people familiar with the matter. Major European firms including BNP Paribas SA benefited from the treatment because some capital surcharges depend on how international a lender is in the eyes of regulators.