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Anna Pinedo Basel implementation in the United States continues to progress, as shown by the recent release of a proposed rule on the application of the liquidity coverage ratio, or LCR. The proposed LCR is largely consistent with the Basel Committee on Banking Supervision's LCR standard, but tougher. The proposed rule would apply to internationally-active banking organisations with $250 billion or more in total consolidated assets, or $10 billion or more in on-balance sheet foreign exposure, as well as designated non-bank systemically important financial institutions that do not have substantial insurance operations. A less stringent version, termed LCR lite, would apply to smaller depository institutions. As under the Basel rule, covered companies would be required to hold high-quality liquid assets (HQLA) of at least 100% of the company's total net cash outflows over a prospective 30 calendar-day period. However, the types of assets that qualify as HQLA for US banks are more limited than those considered qualifying for European banks. Under the proposed rule, the measure of the rate of cash outflow is also more punitive, as it is based on the bank's largest net cumulative cash outflow day within a 30-day liquidity stress, as opposed to the more moderate Basel version of this calculation. US banks would have a shorter transition period than that contemplated by Basel. Covered US banks would be required to maintain an LCR of 80% as of January 1 2015, with step-ups until January 1 2017 when the LCR will be fully implemented.

Personnel leasing, which allows for the hire of employees from another employer or temporary employment agency, has become established in Slovakia. A temporary employment agency enters into an employment contract with an employee, and with an employer seeking temporary workers; it then sends the requested type of worker to the temporary employer. The agency handles payroll and any legal issues concerning the temporary employee (dismissal, for example). The temporary employers save money on payroll administration, severance pay when production is down, and they are also saved the hassle of the hiring process. Of course, the temporary employer must guarantee non-discrimination, and the working conditions (including wages) must be at least as good as with a comparable permanent employee working for the temporary employer. Such is personnel leasing.

Tomasz Konopka Borys D Sawicki Part 1 on this topic covered the penalisation of corruption in the Polish legal system in the historical context, and presented key regulations applicable to corruption at the public level. In this issue, we will focus on regulations pertaining to corruption at the private level. The general aim of the latter regulations is to protect proper and fair economic circulation, in which fair rules of economic exchange are applied and observed and where commercial decisions are made taking into account the economic interests of the relevant party. In turn, the individual aim is different for each regulation. In the case of provisions penalising the so-called corruption of managers, the aim is to protect the entity against decisions or actions, which may bring about damage to that entity. Provisions penalising corruption of creditors, highlighted further herein, aim at protecting creditors and maintain fairness and timeliness when processing claims.

Credit Suisse’s planned overhaul of its legal structure was not motivated by a desire to safeguard its Swiss operations, the bank’s vice chairman of the group executive office has said

The use of high-yield bonds to fund non-controlling buyouts is tipped to be a key development for the M&A market in 2014. The structure could be transformative for deals in Asia

Recent disputes regarding Indian Apollo Tyres’ acquisition of US-listed Cooper Tire underscore why Asian corporates looking to the US must understand its deal protection mechanisms and court precedents

Distressed assets in Spain’s real-estate sector have been luring investors for a long time, but buyers’ have been engaging new strategies recently

Covered bonds backed by loans to small and medium-sized enterprises will remain a niche product of established issuers from mature markets

Industry support for an EU-wide covered bonds framework has grown over the past 12 months, with investors and issuers agreeing that harmonisation would help safeguard the asset class’s preferential regulatory treatment

Conditional pass-through and soft bullet structures will come to the fore in next year’s European covered bond market, as issuers look at new ways to deal with short-term liquidity gaps