Banking and Finance Law Commons^™

Guidelines For Mergers And Acquisitions In France, David J. Berger

Northwestern Journal of International Law & Business

Recent developments in France, including the opening of French markets and the privatization of many of the companies nationalized in the early 1980s, have made France one of the leading countries for investment by American companies seeking to enter Europe prior to the unified European market in 1992. France's liberalization of foreign investment rules, as well as its lifting of foreign exchange controls, have further helped make French companies among the most attractive for both American and European investors.

Worker Rights In The Post-1992 European Communities: What "Social Europe" Means To United States-Based Multinational Employers, Donald C. Jr. Dowling

Northwestern Journal of International Law & Business

The United States media have extensively covered the trade angle of the European Communities [EC] program to create a "single market" by the end of 1992. The media coverage has spotlighted the benefits the EC market will offer multinational corporations, such as the market's "economies of scale" and its 320 million consumer block. By now this 1992 news has sunk in, and many United States corporations are assessing how they might exploit the soon-to-be unified EC market.

The Hamiltonian Paradigm And The International Securities Market: Reversing American Industry's Relative Decline In The Twenty-First Century, Bernard M. Rethore

Penn State International Law Review (1982 - 2011)

This article discusses the eighteenth century understanding of the subtle equilibrium between polity, economy, and government; the deleterious effect of the laissez-faire heterodoxy that entrenched itself during the nineteenth century; and, the adverse reaction that occurred in the twentieth century. In turn, this article shifts its inquiry toward the internationalization of world financial markets as a guide for how United States industry can reclaim its patrimony: by encouraging a re-adoption of the eighteenth century model of the proper balance between government and commerce. Finally, using the example provided by the move toward an international financial market, this article concludes that …

Banking Integration In The European Community, George Zavvos

Northwestern Journal of International Law & Business

The aim of this Article is to outline and assess the Community's strategy for the banking sector by highlighting the philosophy and the context shaping its actions. In addition, this Article will attempt to show that the Commission's various proposals, particularly the Second Banking Coordination Directive ("Second Directive"), take account of the continuing tension of, on the one hand, achieving more efficient banking systems through increased competition and, on the other hand, the absolute need for prudential supervision, enhancing the financial stability of the banks and public confidence in the banking systems. Finally, this article looks at the Community's policy …

Joint Ventures And The Law Of International Claims, Richard B. Lillich

Michigan Journal of International Law

Joint ventures are one of the most remarkable post-World War II international business developments. Although the late Professor Friedmann noted in 1971 that they were becoming "the most important form of foreign investment in the developing countries of Africa, Asia and Latin America," "only within the last two decades has the joint capital venture received more than scant attention." Now, whether one is interested in establishing a "minority joint venture," in which the foreign investor holds less than fifty percent of the equity in the joint enterprise and the host country the majority interest, or a "multipartite joint venture," in …

Joint Ventures In The Soviet Union: Problems Emerge, Geoffrey D. Swindler

Seattle University Law Review

The primary purpose of this Comment is to examine the problems facing Americans who want to set up joint ventures in the Soviet Union. Before examining the challenges, the rationale for the decision to permit joint ventures and the objectives that the Soviets hope to achieve will be addressed. This Comment will then discuss the major provisions of the laws and the major problems these laws have caused for American investors. Finally, the major systemic and political problems confronting joint ventures will be examined.

Capital Neutrality And Coordinated Supervision: Lessons For International Securities Regulation From The Law Of International Taxation And Banking, Charles Thelen Plambeck

Michigan Journal of International Law

Part I of this article provides some background on the legal forces which have influenced globalization and internationalization of the world's securities markets. Part II focuses on the international tax law principle of capital neutrality. Fundamentally, the principle of capital neutrality requires that regulations should not unintentionally direct the movement of capital. Part II analyzes the bases and parameters of the principle of capital neutrality, the experiences of international taxation in applying the principle to a globalizing economy, and the possibilities for applying the principle to international securities regulation. Part III focuses on the international banking law principle of coordinated …

Treasury Secretary James Baker's "Program For Sustained Growth" For The International Debt Crisis: Three Steps Toward Global Financial Security, Nancy A. Aliquo

Penn State International Law Review (1982 - 2011)

This comment will offer a brief overview of the factors leading up to the present international debt crisis. The second and third prongs of Secretary Baker's Program for Sustained Growth will then be analyzed with particular emphasis on the roles Secretary Baker recommends that the IMF, the World Bank, and multinational commercial lending institutions play in resolving the LDC crisis. Last, actions that must be taken by the LDCs as well as LDC demands for trade liberalization will be discussed, along with the effects such trade liberalization would have on the LDC debt situation.

The Role Of The Black Market In China's International Financial System, Amy E. Yates

Northwestern Journal of International Law & Business

The dichotomy between China's political theory and its administrative reality is nowhere more apparent than in the system China has developed to manage the inflow of foreign reserves into the country. In order to avoid disturbing the domestic economy, the government developed an elaborate two-tiered currency system. In addition, the government issued a set of Foreign Control Regulations which placed restrictions on the use of exchange. The regulations purported to place the use of foreign exchange under a "unified national plan." In reality, however, beyond the reaches of the officially promulgated regulations, a thriving black market for foreign currency, foreign …

Performance Bonds, Bankers' Guarantees, And The Mareva Injunction, Peter S. O'Driscoll

Northwestern Journal of International Law & Business

Performance bonds and bankers' guarantees are common features of international sales and construction contracts. They figure prominently in contracts with buyers and employers in the Middle East. In recent years, the amounts represented by these instruments have grown so large that banks have begun to syndicate them in order to limit the exposure of any one bank. With so much at stake, it is imperative that traders, bankers, and lawyers understand the legal implications of performance bonds and bankers' guarantee agreements and the treatment of such agreements by the courts. This Comment will address some of the problems associated with …

The International Lending Supervision Act Of 1983: A First Step Toward Responsible Foreign Lending

Washington and Lee Law Review

No abstract provided.

Book Received, Law Library Staff

Vanderbilt Journal of Transnational Law

Books Received

Aspects of the International Banking Safety Net

By G.G. Johnson, with Richard K. Abrams

Washington, D.C.: International Monetary Fund, 1983. Pp. v, 36. $5.00

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The Soviet Viewpoint

By Georgi Arbatov and Willem Oltmans

New York: Dodd, Mead, 1983. Pp. xviii, 219. $13.95

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The Law of Corporate Groups: Procedural Problems in the Law of Parent and Subsidiary Corporations

By Phillip I. Blumberg

Boston and Toronto: Little, Brown and Company, 1983. Pp. xxxii, 527. $65.00

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Iraq & Iran: Roots of Conflict

By Tareq Y. Ismael

Syracuse: Syracuse University Press, 1982. Pp. xii, 226. $24.00 cloth; $12.95 paper …

Book Review, Robert C. Effros

Vanderbilt Journal of Transnational Law

Mr. Crossick and Ms. Lindsay have collaborated to produce an analytical work entitled European Banking Law. The analysis is composed of four main sections: banking, credit, capital movement, and securities. Each section contains a description of the applicable major laws and regulations in the countries of the European Economic Community (EEC) as well as Portugal and Spain, and includes a summary of the relevant EEC directives and their supporting studies. On the whole, the authors' product is successful and useful, particularly in describing the EEC's attempts to accomplish the difficult task of harmonizing and coordinating banking and financial laws within …

Recent Decisions, Lucy C. Gratz, Laurel C. Williams

Vanderbilt Journal of Transnational Law

Arbitration Transnational Antitrust Claims are Nonarbitrable under the Federal Arbitration Act and Article II (1) of the Convention on the Recognition and Enforcement of Foreign Arbitral Awards--Mitsubishi Motors Corp. v. Soler Chrysler-Plymouth, Inc., 723 F.2d 155 (1st Cir.1983), cert. granted, 105 S. Ct. 291 (1984).

Lucy C. Gratz

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International Banking--The International Banking Act of 1978 Limits the States' Ability to Regulate Foreign Bank Entry, "Conference of State Bank Supervisors v. Conover," 715 F.2d 604 (D.C. Cir. 1983), cert. denied, 104 S. Ct. 1708 (1984).

Laurel Comstock Williams

International Electronic Funds Transfer System: Swift And Its Interface With The New Payments Code, Thomas J. Karl

Penn State International Law Review (1982 - 2011)

Increase in international trade and travel in recent years has increased the volume of international payments, most of which have traditionally been handled by commercial banks. Because paper provided the legal basis for these transactions, they were carried out via fairly complicated documents transmitted by mail. When the sums involved were very large or the time factor particularly important, Telex was used to expedite the procedure.

These factors compelled the banking world to develop a computerized international transfer system. The desired system would facilitate processing international transactions through (1) a high degree of standardization in the types of documents, procedures, …

Perspectives On Foreign Banking In The United States, Henry C. Wallich

Northwestern Journal of International Law & Business

Foreign banking has had a great expansion in the United States. This evolution has been accompanied by a variety of questions and concerns on the part of the public, American legislators and regulators, and American bankers. Many of these concrns have been allayed by the passage of the International Banking Act. Some nevertheless remain. To evalute them, I will begin by setting forth the benefits that foreign banks have brought to the United States. Then I will take a look at the principles that have guided and, I believe, should continue to guide United States' policy in this regard.

Exports, Banking And Antitrust: The Export Trading Company Act - A Modest Tool For Export Promotion, George E. Garvey

Northwestern Journal of International Law & Business

There is an almost universally held perceptoin that expanded export trade is essential to a robust United States economy. President Carter, for example, stated in a report to Congress that export expansion is critical to the health of our economy. Huge balance of payments deficits in recent years, the increasingly successfuly and visible penetration of United States markets by foreign producers, and substantial unemployment in basic industry have all fuedl this concern. These conditions have led naturally to a two-pronged response by the public and members of Congress: first, the call for greater protection against foreign competition; and second, a …

United States Taxation Of Foreign Direct Investment, Alan G. Cohate

Penn State International Law Review (1982 - 2011)

This article, while broad in scope, is narrow in focus. It aims solely at those aspects of the United States' internal tax laws which should be considered by the foreign investor in planning for his investment. These tax considerations may affect the structure of operation of the business enterprise in the United States. The article is not intended as a short course in United States taxation, and the reader should be aware that the complexities of the United States Internal Revenue Code and the regulations issued thereunder are so great that no particular fact situation can be correctly analyzed except …

Special U.S. Rules Directly Affecting Foreign Investment, C. Tanner Rose Jr.

Penn State International Law Review (1982 - 2011)

The purpose of this article is to provide a list of special U.S. rules which guide domestic attorneys in counseling foreign investors on tax and finance consequences of their transactions in the United States. A firm grasp of these rules, as a starting point, enables an attorney to formulate proper suggestions to foreign clients in acquiring property and conducting business without being subject to excessive tax consequences.

Extraterritorial Impact Of The United States Antitrust And Commercial Bribery Considerations, James G. Park

Penn State International Law Review (1982 - 2011)

Historically, the United States has sought to impose its moralistic values extraterritorially. Our antitrust laws and the Foreign Corrupt Practices Act are two well-known examples. Thus, in making the determination to engage in investment in the United States, a foreign entity must consider not only the more publicized restrictions of the Sherman Act and the Clayton Act on its activity within the borders of this country, but also be concerned with the extraterritorial impact of the United States' antitrust laws and the extent to which the decision to invest in the United States may create exposire under United States antitrust …

Antitrust Consideration In Making Investment In The United States, Thomas L. Vankirk

Penn State International Law Review (1982 - 2011)

The antitrust laws of the United States have taken on an increasingly significant role with regard to acquisitions and investments generally, and must be taken into consideration by a foreign investor interested in making foreign investments in the United States. Where the requisite contracts exist to establish subject matter jurisdiction, the antitrust laws of the United States will be applied to all proscribed acts regardless of the nationality of the participants. It is clear that most foreign investment in the United States constitutes the requisite minimum contacts required for jurisdiction.

There are two primary antitrust areas which should be addressed …

The Foreign Investment In Real Property Act Of 1980, Lisa B. Petkun

Penn State International Law Review (1982 - 2011)

For a number of years, foreign investors were able to invest in real property located in the United States and to avoid, to a great extent, the payment of United States income tax on the operating income from the property and on the gain realized upon the disposition of the property. However, with the enactment of the Foreign Investment in Real Property Tax Act of 1980 ("FIRPTA") the ability of foreigners to avoid the United States tax gains realized upon the sale of real property located in the United States has been greatly circumscribed. To accomplish this result, FIRPTA added …

Regulation Of Foreign Banking Activity In The United States., Francis Rooney

St. Mary's Law Journal

Abstract Forthcoming.

Books Received, C. C. S.

Vanderbilt Journal of Transnational Law

BOOKS RECEIVED

THE EXTENSION OF CORPORATE PERSONALITY IN INTERNATIONAL LAW By David A. Ijalaye

Dobbs Ferry, New York: Oceana Publications, 1978. Pp. 354.

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HUMAN RIGHTS AND THE SOUTH AFRICAN LEGAL ORDER

By John Dugard

Princeton: Princeton University Press, 1978. Pp. 470.

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INTERNATIONALE BANKEN: AUSLANDSAKTIVITXTEN VON BANKEN BE-DEUTENDER INDUSTRIELANDER

By Ursel Stueber

Hamburg: Verlag Weltarchiv, 1974 (1977 Supplement available). Pp. 204.

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INVESTMENT INCENTIVE PROGRAMS IN WESTERN EUROPE

By B. T.Mansbach and R. J. Waldman

Washington, D.C.: International Division, Chamber of Commerce of the United States, 1978.

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SECESSION: THE LEGITIMACY OF SELF-DETERMINATION

By Lee C. Buchheit

New Haven, …

Legal And Economic Incentives For Foreign Direct Investment In The Southeastern United States, Paul S. Dempsey

Vanderbilt Journal of Transnational Law

The United States of America may well be the most attractive area for investment in the entire world. Foreign investment, although failing to play a dominant role in the American economy, has nevertheless enjoyed a substantial and significant growth in recent years. This contemporary acceleration may be attributed to a number of factors, including, for example: (a) America's enormous pool of skilled and well educated labor; (b) the narrowing of the gap between the cost of United States and foreign labor; (c) the abundance of domestic energy and other raw materials; and (d) the relative docility of the United States …

Books Received, Journal Staff

Vanderbilt Journal of Transnational Law

AIR CHARTER REGULATION

By Jaap Kamp

New York: Praeger Publishers, 1976. Pp. 162. $16.50.

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ANATOMY OF INTERNATIONAL LAW

By J.G. Merrills

London: Sweet& Maxwell, 1976. Pp. 106. $7.55.

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AUSTRALIAN LAWYERS AND SOCIAL CHANGE

Edited by David Hambly & John Golding

Sydney: Law Book Company, Ltd., 1976. Pp. 392.$17.50.

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COLONIAL EMANCIPATION IN THE PACIFIC AND THE CARIBBEAN

By Arnold Leibowitz

New York: Praeger Publishers, 1976. Pp. 221.$20.00.

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THE DEVELOPING COMMON MARKET

By John Paxton

Boulder, Colorado: Westview Press, 1976. 3rd edition. Pp. 240. $25.00.

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ERSKINE MAY'S PARLIAMENTARY PRACTICE

Edited by Sir David Lidderdale

London: Butterworths, 1976. …

A Report On Certain Recent Legal Developments In The International Monetary Fund, Joseph Gold

Vanderbilt Journal of Transnational Law

In the recent past, the main activity of the International Monetary Fund in connection with the development of international law has been the negotiation and drafting of an amendment of the Fund's Articles of Agreement. The present report deals primarily with that activity, but also comments on the sixth general review of the quotas of member states in the Fund.

On August 15, 1971, the United States, having decided to free itself from certain constraints that had become unacceptable and to exercise greater autonomy for national policies, suspended the convertibility into gold or other reserve assets of balances of United …

The Law Applicable To Foreign Investments: The Contribution Of The World Bank Convention On The Settlement Of Investment Disputes, Phillipe Kahn

Indiana Law Journal

Translated from the French by Arthur M. Fell

International Law-Power Of Government-In-Exile To Enact Valid Legislation, John C. Hall S.Ed.

Michigan Law Review

After occupying the Netherlands, Germany confiscated bonds of Netherlands nationals and sold them in the black market. Archimedes, an American national, purchased such bonds from a Swiss firm in violation of the Trading with the Enemy Act and executive freezing order. The bonds were placed in a blocked account in the Federal Reserve Bank. A suit by the Netherlands was removed to the New York federal district court and Archimedes was interpleaded. The Netherlands claimed title under a decree made in exile vesting protective title in the Netherlands government. While holding that the complaint stated a cause of action, the …

International Law - Recognition Of Soviet Russia - Extraterritorial Effect Of Decrees Of Confiscation And Nationalization

Michigan Law Review

The Moscow Fire Insurance Company, the Northern Insurance Company of Moscow, and the First Russian Insurance Company were incorporated in Russia under the Czarist regime, and given authority to do business in New York. Deposits were made in New York for the benefit of policy holders and creditors in this country. Subsequent to the revolution in Russia and the Soviet decrees nationalizing all Russian corporations and confiscating without compensation such corporations' assets in Russia and abroad, these deposits were turned over to the New York State Insurance Commissioner for liquidation. Large sums remained after domestic claims were satisfied and the …