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In the second part of a round table on high-yield issues in Europe, practitioners, investors and bankers discuss due diligence and the disclosure requirements for companies coming to the market.

The American Bar Association (ABA) is recommending measures to restrict lawyers making political contributions to get government work. The ABA wants to prevent corruption and uphold judicial independence and integrity. The measures were laid out in a report published by its task force on political contributions at the end of July. Lawyers are alleged to have made political contributions to secure more government contracts, particularly municipal bond offerings. This problem, referred to as 'pay for play', usually occurs at the state and local level. Nancy Cowger Slonim of the ABA says: "We want law firms to get government work on the basis of their experience, expertise and qualifications."

Dennis Block and Bruce Zirinsky, former partners of Weil Gotshal & Manges in New York, have made independent moves to Cadwalader Wickersham & Taft. Shortly after, partner Jonathan Hoff also followed. Block, a corporate, M&A, and securities litigation specialist, was one of Weil Gotshal's highest earners with estimated billings of US$3 million a year. He announced his plans to leave the firm three months ago and had been considering his next move. It is understood he was unhappy with the increasingly international focus of Weil Gotshal, particularly with the opening of its European offices. However Block says: "I had a problem of philosophy with one of the partners. We had a different management style and view and that is my main reason for moving."

In a recent case in Ontario, a judge ruled that comfort letters are in general not contractually enforceable. However, liability could run for negligent or fraudulent misrepresentation. By Michael Stephenson of Blake, Cassels & Graydon, Toronto

The traditionally separate businesses of commercial banking, securities and insurance are increasingly merging. An overall approach to supervision is required. By Philip Wood and Paul Phillips of Allen & Overy, London

On July 29 1998 the sale of Brazil's giant telecoms company, Telebrás, raised R$22 billion (US$19 billion), between U$4 billion and U$5 billion more than expected in the financial markets and representing a premium of 63.74% over the minimum price. The sale demonstrated the enthusiasm that multinational companies have for Latin America, and confirmed that international companies are willing to commit large resources into the emerging markets.

Wilde Sapte, the UK firm that intended to link with Arthur Andersen, is encountering further problems after the failure of its merger in June. Lawyers are continuing to leave, including Paris partner Thomas McDonald and assistant Matthieu de Varax. The New York office has closed and the resident partner Diarmuid Brennan and his assistant have left. McDonald, who specializes in asset finance, is to join White & Case's Paris office with two assistants. De Varax is moving to Simmons & Simmons' Paris office with two other lawyers. He will be made up to partner. The moves leave the Paris office with two remaining partners.

Gary Spiess, general counsel at BankBoston, Boston, talks to Shane Sorenson

The Commission has put forward two proposals for Directives to establish a clear regulatory framework for electronic money within the EU. By creating harmonized minimum rules on the stability of institutions responsible for issuing electronic money, it aims to encourage the development of electronic commerce and promote confidence among consumers and business.

A recent Hong Kong case, Rudolph Robinson Steel v Nissho Iwai Hong Kong & Anor [1998], demonstrates that the parties to a letter of credit must show a clear intention if the presentation of a future document is to constitute a binding arrangement under the letter of credit.