Exclusive-US regulators expected to significantly reduce Basel capital burden, sources say

U.S. regulators are expected to significantly reduce the extra capital banks must hold under a proposed rule that has drawn aggressive pushback from Wall Street, said eight industry executives in regular contact with the agencies and regulatory officials. Bank regulators led by the Federal Reserve in July unveiled the "Basel III" proposal to overhaul how banks with more than $100 billion in assets calculate the cash they must set aside to absorb potential losses. The agencies have said they are analyzing hundreds of public comments and data from banks on the impact of the proposal.