Global bank regulators seeking 'miracle' deal on capital standards

London

GLOBAL banking regulators are scrambling to reach a compromise on new capital standards, as political support wanes in Europe and the US for new curbs on the industry.

The Basel Committee on Banking Supervision is huddling at a private meeting in Santiago, Chile, on Monday and Tuesday to try to bridge deep divides between the US, Europe and other nations on a package of rules billed as the final international regulatory response to the 2008 financial crisis. The Basel Committee, which includes the US Federal Reserve and the European Central Bank (ECB), is racing to meet a year-end deadline for completing the standards.

The US has pushed for strict rules to protect against future market meltdowns, whereas Europe and Japan have warned the Basel Committee's proposals could hit banks with billions in costs. The election of Donald Trump, who has vowed to roll back financial regulations, created uncertainty before the meeting about possible changes …