18%). Germany's Constitutional Court ended its hearing on the ESM & fiscal pact yesterday and did not give a date for a ruling but finance minister Schauble says he hopes it will come before the fall. European markets opened lower but have bounced back towards flat on the day mostly on short covering as

s tomorrow @ 3pm CET) (trading -0.50%) • Some of the world's top hedge funds are pouring money into the Greek banking sector (FT) • German FinMin Schauble warns that EU bank rescue agency needs treaty changes (Fr) • German FinMin says that Slovenia can manage without bailout but needs painful restruct

5Y 10Y Relaxation of ECB collateral lending rules (e.g., more loans, lower allowed credit ratings on asset backed securities) Finance ministers Schauble and Baroin push for watered down application of certain Basel Ill standards Sanctioning for EU banks to address 115 bn capital shortfall through e