For years, U.S. banks, and especially the largest ones, have dreaded the seemingly inevitable arrival of new and more burdensome regulatory capital requirements. U.S. banking regulators' proposal to revamp those requirements, issued in mid-June, should dispel many of their fears, although the proposal is likely to result in extra work for U.S. banks and may put them at a disadvantage to global competitors in the ABS market.

Comments on the 700-page proposal, which is split into three parts, are due by Sept. 7. While few industry comments have been filed, early observers are pleasantly surprised by the proposal's language.

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