10:23 AM EST, 03/06/2024 (MT Newswires) -- US regulators are expected to lower the additional capital that must be held by banks with assets of more than $100 billion under the "Basel III" proposal unveiled in July, Reuters reported Wednesday, citing unnamed sources.

The roughly 16% increase in aggregate capital announced by bank regulators led by the Federal Reserve in July for affected banks could "fall sharply" as regulators rewrite the proposal, the report said, citing the sources.

The regulatory talks are in their initial stages and decisions haven't been made, Reuters quoted the sources as saying.

Fed Chair Jerome Powell talked about Basel with the chief executive of Goldman Sachs Group ( GS ) , the report said, citing Fed logs.

In recent months, Powell also met or talked with the CEOs of JPMorgan Chase ( JPM ) and Bank of America ( BAC ) and other top bankers, the report said, citing calendars that Reuters said didn't mention what was talked about.

Reuters said the Fed declined to comment, while the banks declined or didn't reply to requests for comment.

(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)

Price: 35.46, Change: +0.07, Percent Change: +0.18