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Enron has recently failed in both Brazil and Argentina to find bank finance. A panel of lawyers, banks and sponsors discuss how to reach financial close on regional projects

On October 28, the Commission adopted a communication entitled "Financial Services: Building a Framework for Action". The aim of the communication is to give the EU financial markets the possibility to support competition and resist financial instability. The strategy put forward to achieve this aim is to establish a capital market that meets the needs of issuers and investors, abolishing the barriers to cross-border provision of financial services such as mortgage loans, insurance and retirement services, with the view to offering the consumer a larger choice, and to guarantee higher levels of protection. The EU's financial services sector already accounts for some 6% of the EU's GNP, and it offers essential financial products to both industry, notably investment capital, and individual consumers, such as mortgages, pensions and insurance. It also accounts for 2.45% of EU employment and there is considerable potential for job creation in the sector. The communication highlights four areas of the sector in which action is required:

In October 1990, the defendant telephoned the plaintiff, convincing him to invest in futures options. After the plaintiff had signed an investment contract, the defendant began to trade in put and call options for the plaintiff, charging $300 in commission for each transaction. This led to remarkably high commissions. As the plaintiff's two accounts began to depreciate steadily, he ordered the defendant to close them. Subsequently, he sued the defendant claiming all his money back.

Recent developments in Spanish company law will favour access by Spanish companies to new financial mechanisms. One of these developments relates to the possibility for Spanish companies — previously not recognized by law — to issue redeemable shares (acciones rescatables), as an instrument through which the company may obtain additional funds for a limited time. This type of share represents an intermediate between fixed-income and variable-income securities. The main features of this new regime are as follows:

The Portuguese Capital Markets Commission has enacted a regulation determining the terms and conditions for the direct listing of foreign securities on the Portuguese Stock Exchange.

On July 1 1998 Commissione Nazionale per le Società e la Borsa (CONSOB) approved Resolution No. 11522 introducing new rules for intermediaries. The rules describe the procedure to be followed by an EU investment company to obtain authorization from the Italian authorities to offer in Italy services not admitted to mutual recognition.

On October 12 1998, Deutsche Börse began step two of its electronic trading system: Xetra Release 3. All of the 2,000 or so German and foreign stocks listed on the Frankfurt Stock Exchange as well as 360 bonds and 28 equity warrants may now be traded electronically. British securities are excluded from trading on Xetra because all market participants of Deutsche Börse may trade British securities on the London Stock Exchange by means of its electronic trading system SETS from January 1999.

The ministry of finance submitted a government bill on amending the Finnish Securities Market Act to parliament in October 1998.

As consolidation in the Swiss legal market continues, lawyers are divided over the need to look beyond national boundaries. Stephen Mulrenan reports from Zurich and Geneva

US law firm Orrick, Herrington & Sutcliffe acted as US legal advisers and US tax advisers to Tennessee Valley Authority (TVA) on the launch of its $2 billion 10-year global bond. Partners Christopher Moore and Carl Lyon led the team for Orrick Herrington. The TVA had planned to raise $1 billion, but poor US employment figures issued early on launch day led to strong bond trading and encouraged the TVA to increase the size of the issue. Proceeds from the bond issue will be used to help repay debt owed by the TVA to the US Treasury. In October, the TVA gained the approval of Congress to raise $3.2 billion in Federal Financing Bank (FFB) debt. The new issue is expected to be listed on the New York, Singapore, Hong Kong and Luxembourg stock exchanges.