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New regulations from Argentina’s Securities Commission provide guidelines for Argentine companies seeking to raise capital in the US through ADRs or GDRs. By Malen Gaynor Giron of Asorey & Navarrine, Buenos Aires

In early March 1998, the German federal government published a draft statute for the implementation of EC directives on deposit guarantee schemes (94/19/EC) and investor compensation schemes (97/9/EC). The statue will create a whole new system of compensation schemes. The existing (private and voluntary) deposit protection scheme of the association of private banks in Germany (Einlagensicherungsfonds), offering an exceptionally high degree of protection (ie each deposit is insured up to an amount equivalent to 30% of the bank's liable capital) will remain in place with the new compensation schemes.

The development of a well organized bond market depends on the controls guaranteeing the stability and correct functioning of the competitive mechanisms, the transparency of the determination of the prices and the protection of the saver-investor, among other things.

The new Act on Venture Capital Investments, Venture Capital Companies and Risk Investment Funds will come into force on June 16 1998.

The minister of economic affairs has proposed the establishment of a guarantee fund for contributors and investors in credit institutions. The proposed act, amending the 1995 act, incorporates the EU directive on investor guarantee funds. It will establish a joint regulation of guarantee schemes for contributors and investors in credit institutions including banks, mortgage credit institutions and stockbrokers. If any institution covered by the act becomes bankrupt, any cash deposits will consequently be covered up to Dkr300,000 (US$42,000) and security deposits will be covered up to Dkr150,000.

On April 2 1998, the House of Representatives passed the new Patent Law 16(1)/98. The main provisions of the new law which are significantly different from the old law are as follows:

The proposed cut of the 1.5% stamp duty payable on credits granted by Finnish credit institutions will effect major changes on credit granting. Under the government bill, stamp duty will no longer be levied on loan agreements and mortgages. The amendment is proposed to be retroactive, enabling creditors to proceed an action ex post facto for the stamp duty paid in connection with the granting of the loan if the loan agreement has been signed on or after April 29 1998.

When a railroad tank car explosion forced 1,000 residents of the New Orleans neighbourhood of Gentilly to evacuate their homes for 36 hours in 1987, the incident attracted little attention outside Louisiana. After all, there were no deaths and the residents did not suffer any serious damage or injuries. But 10 years later, after a New Orleans jury awarded US$3.4 billion in punitive damages against five companies found to be at fault, the case, In re New Orleans Train Car Leakage Fire Litigation, No. 97-CC-2547, suddenly captured the eye of the legal community and national media, earning itself the nickname 'The Great New Orleans Train Robbery'.

Decree 3119 of 1997 regulated, for taxation purposes, the amounts allowed as deductions from net income when associated with articles imported massively as contraband.

The draft Directive on settlement finality, incorporating amendments proposed by the European parliament, was approved by the Council of Ministers at the end of April 1998. It provides for legislation to deal with the position of cross-border payments when a bank or securities firm cannot meet its obligations. It aims to cut the systemic risk in payment and securities settlement systems and to minimize the disruption to a system caused by insolvency proceedings against a participant in the system.