Wall Street banks said to win big concession in new derivatives rule

Washington

WALL Street is close to cutting billions of dollars from the cost of a derivatives rule as a debate among regulators over how tough the provision should be shifts in banks' favour.

Firms such as JPMorgan Chase & Co and Morgan Stanley wouldn't have to set aside as much money in trades between their own divisions in the final version of a rule US regulators may release as soon as next month, said two sources.

After months of disagreement, the agencies, which include the Federal Deposit Insurance Corp (FDIC) and Federal Reserve, decided to …