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World's biggest banks will face up to $1.2 trillion shortfall in meeting new FSB rules.
German lawmakers champion small banks and savings cooperatives in face of EU revamp of capital market rules.
FSB proposes significant loss-absorbing liability buffers; banks may pass on higher funding costs to clients.
BIS says decline in fourth quarter was sharpest since Lehmans collapse.
Rollover would trigger default, S&P says, but it might be temporary.
Rollover would trigger default, S&P says, but it might be temporary.