Pressure Grows for Substantive LR Redesign
The ECB today joined U.S. regulators (see FSM Report LEVERAGE23) in providing temporary leverage-ratio relief for central-bank deposits.

Fed: CCAR Resubmissions to use 2Q Data
Although GSIBs still await the Fed’s publication of the global market shock and largest-counterparty default scenarios on which their CCAR resubmissions depend, the Federal Register today indicates resubmissions will be based on second-quarter data, including the global market shock and largest-counterparty scenarios.

Municipal-Finance Facility Faces Challenge
As in its hearing on the Main Street program, today’s CARES Act Congressional Oversight Commission hearing on the Municipal Liquidity Facility (MLF) showed sharp differences between Democrats and Republicans.

Fed Takes Stress Hammer to Large U.S. Banks
In addition to specifying the stress-test data components noted earlier today, the Fed late this afternoon released scenarios for revised stress tests. In June, it allowed dividending, but noted that it would advise banks on September 30 if these may continue in the fourth quarter.