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Basel III has become an evolutionary process, with regulators finalizing one key part of the plan even while they simultaneously contemplate a major alteration.

Banks Brace for Even Tougher Leverage Ratio

Regulators are expected to stick close to their original plan to establish how much the biggest banks are allowed to borrow against their total balance sheets when they issue a final rule on Tuesday. But that doesn't mean there isn't room for a significant twist.

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