Basel III fixed the LR at 3% of Tier 1 capital which still corresponds to total assets about 33 times Tier 1 (against 50 times equity for some EU banks pre-crisis). There are pressures to exclude repos, sovereign bonds and export credits from the LR.
And finally, speaking as a Canadian, I am pleased to note that Palle had a special affection for Canada and Canadians and was an avid reader of the Toronto Globe and Mail (the sport section as well as the business section). In this context, it bothers me a lot that he freely admitted that he was interested in Australia even more.