Delays in introducing the Dodd-Frank Act are likely to force the US to postpone the implementation of key Basel 2.5 capital rules, in a move which could lead US investment banks to benefit from regulatory arbitrage, according to JP Morgan analysts.

In a note published this morning, JP Morgan analysts led by Kian Abouhossein said that there was a 80% probability that the US will delay the implementation of Basel 2.5 rules.