In the journals

Enron accusations force banking rethink
A focus on the recent enforcement actions taken against Citigroup, JP Morgan and Merrill Lynch, who arranged structured finance transactions on behalf of Enron and were subsequently charged with assisting to manipulate earnings. The new procedures and mechanisms implemented by the banks in the aftermath of Enron's collapse provide useful guidelines for bankers and advisers to other companies that participate in, or arrange, structured finance transactions.

New Zealand's financial sector regulation
A summary of the New Zealand financial sector regulatory framework.

Banks get a grip on risk
A consideration of some of the major improvements to risk management practices that have been implemented in Australian banks in recent times.

The accidental insider trader: Haylock v Southern Petroleum
The decision in Haylock v Southern Petroleum (referred to in the Spring 2003 issue of Financial Services Quarterly) suggests that the interpretation of the Securities Markets Act 1988 by the Court of Appeal is unlikely to achieve the purpose of the legislation.

Anomalies and lacunae in the treatment of preferential creditors
Mike Gedye identifies what he considers are significant defects in the preferential creditor regime following implementation of the Personal Property Securities Act 1999. These defects could have adverse consequences for creditors.

Bank liability under constructive trusts: implications of the Twinsectra case
A recent House of Lords decision is good news for banks that assist in the transfer of trust property through bank accounts.

Swiss bank accounts - demolishing the myths
James Nason, Head of International Communications at the Swiss Bankers Association in Basel, answers questions frequently asked about Swiss bank accounts.

A brief history of Basel
A basic overview of what the Basel Accord is and how it came about, together with a summary of what Basel II is trying to achieve.

The mortgagee's duty on exercising the power of sale
A discussion of the Privy Council's consideration of a mortgagee's duty in New Zealand to take reasonable care to obtain the best price reasonably obtainable.

2002 ISDA Master Agreement: what constitutes good faith and reasonableness?
A consideration of how the terms "good faith" and "use commercially reasonable procedures in order to produce a commercially reasonable result", in the context of determining the Close-out Amount under the 2002 ISDA Master Agreement, could be interpreted under the laws of Australia.

Enquiries and information

For more information on any of the cases, articles and features in Financial Services Quarterly, please email Rachel Gowing or call on 64 9 916 8825.