Basel

One Federal Reserve governor’s push to use an untapped capital buffer to counteract potential losses is stoking concerns that such a maneuver could spook financial markets.

The choice appears to reaffirm U.S. regulators' commitment to the international standards-setting body.

Federal Reserve Vice Chairman for Banking Supervision Randal Quarles is expected to succeed Bank of England Governor Mark Carney as chairman of the Financial Stability Board, a key global financial regulator, according to two people familiar with the matter.

The Fed’s top regulator is reportedly gunning to run the international Financial Stability Board, but the president's trade wars and recent criticism of Europe are impeding that effort and weakening U.S. regulators' hand more generally.

The senior official said U.S. regulatory agencies should not rush to complete certain final aspects of Basel III, to prevent the new standards from conflicting with existing rules.