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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."

In December 1997, the EU acknowledged Estonia’s efforts to build a thriving economy in just six years of independence: the country is now the first former Soviet state negotiating EU membership. Since 1992, enthusiastic governments have acted fast to dismantle the old structures, privatize state-owned companies and set up a monetary reform based on a currency board.

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

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."

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.

In Resolution 658E of June 25 1998, the Central Bank of Chile amended the Compendium of Foreign Exchange Regulations of the Central Bank by reducing from 30% to 10% the mandatory deposit requirement or Encaje on foreign exchange brought into Chile as investments, loans or capital contributions.

On January 31 1998, the Promotion of Investments Law became effective with the aim of promoting domestic and inward investment. The equality of inward investment with domestic investments is now guaranteed by the government which takes responsibility for damages and ensures the free transfer of capital and profits (free convertibility is permitted by law).

In the wake of Asia's financial crisis, continuing speculation on a Renminbi devaluation appears to have triggered an outflow of foreign currency from China.

The Monetary Authority of Singapore (MAS) has announced that share buybacks will be made legal by the fourth quarter of 1998, following feedback from industry bodies and financial market participants. Companies will be permitted to repurchase shares on the market in round lots out of distributable profits at any time within the period mandated by shareholders. The proposed legislation, which will complement the provisions permitting capital reduction in the Singapore Companies Act, will provide appropriate safeguards to ensure that creditors' interests are preserved and to minimize abuse, while providing sufficient flexibility to companies.