Regulators Back off 'Too Big to Fail Bank' Plans

Plans to impose extra safeguards on the world's top banks may be softened, a senior regulator signaled on Wednesday as world leaders gathered in Seoul to keep their regulatory reforms on track. Shares of Mizuho Financial Group MFG and other Japanese banks surged on Wednesday after a Financial Times report saying they -- and others -- may be exempt from new global rules under consideration that could require a further boost of capital. The Group of 20 leading economies (G20) summit in Seoul on Thursday and Friday will endorse a set of tough new bank capital rules known as Basel III in what will be a major regulatory milestone in the three-year old financial crisis. But the leaders had also hoped to approve a package of extra measures for the biggest banks so that taxpayers will not have to be called on again to bail them out in the next crisis. Continue reading the article.