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The article reports on the plan of Securities Exchange Commission (SEC) to propose the rules that heighten the municipal disclosure before the end of September 2008 in the U.S. SEC Chairman Christopher Cox stated that the proposal aimed at the implementation of municipal securities initiative that was stated in the government report in 2007. He further states that the rule is in accordance to the rules of the commission called Electronic Municipal Securities Rulemaking Market Access (EMMA).

The article reports that Democratic leaders of the House Financial Services Committee are considering to establish a federal regulator for bond insurers in the U.S. Representative Paul E. Kanjorski relates that they are considering whether to create a federal regulator for insurers or to prove them with the option to comply with a federal charter. Moreover, Kanjorski adds that he plans to hold a hearing on February 14, 2008 to discuss the issues.

The article reports on the concern about the provisions of variable rate demand obligation (VRDO) in the U.S. Money market fund officials warn that the inclusion of new terms in variable-rate debt transaction of some banks and issuers is difficult to monitor and limits bondholder's rights. They are also concerned about the negative effect of the changes in bond indentures for some deals on bondholders.

The article reports on the competitive sale of the Virginia College Building Authority's $148 million of educational facilities revenue bonds in Virginia. The authority's bonds are backed by a revenue pledge by the schools involved. The article also reports that Richmond will tap markets with a $46.2 million general obligation competitive bond sale to finance various capital projects.

The article focuses on several speculations concerning the various changes in the municipal securities market as regulators try to carry out mandates under the Dodd-Frank Wall Reform and Consumer Protection Act in the U.S. in 2011. It is said that additional funding is needed by the U.S. Securities and Exchange Commission (SEC) and the Municipal Securities Rulemaking Board (MSRB) to fulfill their Dodd-Frank mandates. The initiative of the MSRB to address the funding-related issue is also cited.

The article offers information on the Municipal Securities Rulemaking Board (MSRB) and its online system Electronic Municipal Market Access (EMMA) in the U.S. It notes that MSRB became the only nationally recognized municipal securities information repository (NRMSIR) which provides an easy place to file data to issuers and agents through EMMA. Mark Stockwell of PNC Capitol notes that EMMA is a great tool for making the timely availability of disclosures to institutional and retail investors.

The article offers information on the approved amendments to the Rule 15c2-12 on disclosure from the Securities and Exchange Commission (SEC) in the U.S. According to the author, the changes would increment the quantity and convenience of municipal issuers' containing disclosure. Further, the author noted that these SEC's changes are the first significant expansion of the types of disclosures issuers.

The article reports on the importance of the financial regulatory reform to the municipal securities market in the U.S. It states that the reform changes the municipal securities market because it would lead to federal oversight pertaining to unregulated financial, swap and other advisers in the muni market. It infers that it is significant for the muni market because it would prohibit states and localities that have discretionary investment of less than 50 million dollars.

The article reports on the move of a federal bankruptcy court to conduct a hearing on the derivative contracts of Lehman Brothers Holdings Inc. in Manhattan, New York City. Lehman served as guarantor of 930,000 municipal and other contracts, and its subsidiaries Lehman Brothers Special Financing and Lehman Brothers Derivative Inc. were the counterparties. Lehman requested the court to assess the uncalculated termination payments of the contracts.

The article reports on the wide range of choices for candidates to lead agencies under President Barack Obama whose actions affect the municipal bond market in the U.S. Gary Gensler is a former Treasury Department official and partner at Goldman Sachs Group Inc. Roel Campos is a former commissioner at Securities and Exchange Commission (SEC) and is currently a partner at Cooley Godward Kronish LLP. Jane Garvey is a former head of the Federal Aviation Administration (FAA).

The article offers information on the efforts undertaken by the federal officials and lawmakers in addressing economic downturn in the U.S. According to Ron Stack, new chairman of the Municipal Securities Rulemaking Board (MSRB), the board is the one that provides fellow regulators with information, data and different alternative proposals aimed in improving the workings of the municipal market.

The article reports that the news of Lehman Brother Holding's bankruptcy and Merrill Lynch & Co's sale to Bank of America Corp. has stunned the municipal market on September 15, 2008. It led to immediate worries over the status of pending deals and unease. It is reported that Lehman Brothers announced that it would file for bankruptcy protection. Also it is stated that Lehman chief executive officer Richard Fuld had said that the firm had weathered the credit crunch.

The article reports on the plan to revise Rule 15c2-12 on disclosure to pave the way for a muni-Edgar system in the U.S. Securities and Exchange Commission (SEC) chairman Christopher Cox said that he would like the Municipal Securities Rulemaking Board (MSRB) to host the muni-Edgar system. If implemented, the MSRB-hosted muni-Edgar system would replace the four existing nationally recognized repositories that currently collect and make available issuers' secondary market disclosure documents.

The article reports on the aftermath of the 2006 U.S. midterm elections. The results has concluded Democrats' takeover of the House of Representatives and the Senate, which manifests Democrats control of the House for the first time since the 1994 Republican revolution. Many conservative analysts stated that it had less to do with declining support for the Republican Party and more to do with many voters' disillusion over Republicans.

The article reports on the plan of the federal government to resume the dissemination of data on producer prices as quickly as possible, in the case when a major terrorist attack strike in Washington D.C. The decision was made after it has become eminent that such information is vital to the smooth functioning of financial markets.

The article reports on the revamp of the 12b-1 sales and distribution fees as decided by the Securities and Exchange Commission (SEC) in Washington. Mary Schapiro, chairman of SEC, believes that the revamp will provide better disclosure on the sales of mutual funds and brokerage industries. The proposal on distribution fees has been anticipated to limit the firm's capacity to charge more in ongoing fees.

The article reports that the Financial Industry Regulatory Authority (FINRA) has fined seven firms for a total of $184,500 for the failure to report municipal securities, unfairly pricing bonds and non-municipal rule violations in the U.S. FINRA has fined BOSC Inc., for $80,000, Scharles Scwab for $30,000, Stoeve, Glass & Co. at $20,000 and Country Club Financial Services Inc. with $10,000. The firms admitted the charges and consented to the FINRA fines but the firms declined to comment.

The article reports on the reorganization of MBIA Insurance Corp. of Illinois by MBIA Insurance Corp. to form a new U.S. public finance-only insurer that will operate separately from its structured finance business. MBIA Insurance Corp. gave its entire $537 billion book of public finance business to MBIA Insurance Corp. of Illinois, which expected to be re-named National Public Financial Guarantee Corp.

The article reports that the Investment Co. Institute (ICI) is seeking improvements to municipal disclosure. The ICI believes the improvements are needed since few bonds are being insured and it would even seem to see lawmakers repeal the so-called Tower Amendment. ICI General Counsel Karrie McMillan cited a reason for the importance of the disclosure. ICI wants the U.S. Securities and Exchange Commission (SEC) to use its power to update its rule on disclosure in a way that will ensure more timely or more frequent filings from municipal bond issuers.

The article reports that Investment Co. Institute (ICI) urged the U.S. Securities and Exchange Commission (SEC) to expand its proposed rating agency policies on structured products. ICI also urged the Commission to increase the secondary market disclosure requirements for the municipal market. Paul Schott Stevens, president of ICI, said that they will support the move of the Commission to expand such policies.

The article deals with the decision of the U.S. Supreme Court in the case Department of Revenue of Kentucky v. Davis that upheld 42 states' preferential tax treatment of their bonds. The decision was hailed by market participants as a resounding victory for the municipal securities market. Len Weiser-Varon, an attorney, said that the majority made it clear that the court does not want to do anything that might be disruptive to the municipal market. The response of the Securities Industry and Financial Markets Association to the ruling is cited.

The article discusses a report from Standard & Poor's which claimed that the proposed changes in public pension accounting and reporting standards by the Governmental Accounting Standards Board (GASB) will not immediately impact credit. The proposed standards will require states and localities to immediately report pension investment gains or losses that deviate in excess of 15% from the actuarially assumed rate of return. GASB will also require the unfunded portion of a retirement plan to be included in the financial statement.

The article offers information on the proposal of the Municipal Securities Rulemaking Board (MSRB) to make a draft pay-to-play rule for municipal advisers by the end of December 2010 based on the political contributions restrictions imposed on dealers under its Rule G-37.

The article discusses the call of Bond Dealers of America (BDA) and the Securities Industry and Financial Markets Association (SIFMA) on the U.S. Securities and Exchange Commission to reject Municipal Securities Rulemaking Board's proposal to double the amount of transaction fees it collects from dealers to obtain an additional 17 million U.S. dollars in revenue. Michael Decker of SIFMA stated in a letter that the board holds little justification for such an increase in its revenue and did not explain how its expenses are expected to rise by 84%.

The article reports on the plan of U.S. Senate Banking Committee chairman Christopher Dodd to pursue a financial regulatory reform bill without the support of the Republicans. Dodd sent a letter to the U.S. Securities and Exchange Commission urging it not to impose a ban on pension fund placement agents. He suggested that the agency regulate pension fund placement agents similar to the way a draft of his bill would regulate municipal market financial advisers.

The article reports that a three-judge panel of the U. S. Court of Appeals for the Second Circuit in New York City found there was substantial evidence to support the jury verdict that William DiBella, former majority leader of the Connecticut Senate, and his consulting firm, North Cove Ventures, were part a fraudulent pay-to-play scheme in connection with the state's pension fund. The court asserted that the two broke federal securities laws and violated the Investment Advisers Act of 1940.

The article reports that a multi-agency task force will be established by the administration of U.S. President Barack Obama which will investigate and prosecute financial crimes and civil violations related to the financial crisis and economic recovery programs. The president's executive order stated that the task force will include senior officials from more than 23 federal department and agencies. The task force will also make recommendations for better cooperation when it comes to tackling financial crimes.

The article reports on the reaction of the investment market to the U.S. Securities and Exchange Commission's (SEC) proposal to ban investment advisors' use of third-party placement agents. The proposal could potentially place new and small firms at a disadvantage as well as create additional unintended consequences, according to state officials, broker-dealers and investment advisers. The proposal is part of a series of rule changes launched by the SEC.

The article reports on a letter sent to Mary Schapiro, chairman of the U.S. Securities and Exchange Commission (SEC), by New York City Comptroller William Thompson. The letter is urging Schapiro to implement a ban on political contributions made by investment advisors who are compensated for giving services to public pension funds. According to SEC spokesman John Nester, the pension fraud efforts of the SEC are intended to eliminate corruption involving the securities markets and government officials.

The article reports on the student loan market in the U.S. The U.S. Department of Education announced in November 2008 a series of programs to support non-bank lenders in financing student loans. Peter Warren, executive vice-president of the Education Finance Council reportedly called on the Treasury Department to use its authority under the $700 billion bailout package to provide liquidity for issuers of student loans who are seeking to convert their auction-rate securities that have become illiquid.

The article reports on a notification received by Wachovia Bank from the U.S. Securities and Exchange Commission (SEC) enforcement staff that they may recommend the agency to file charges against the bank. The decision is related to an investigation into the bank's alleged anti-competitive bidding practices in municipal derivatives and investment products. The civil investigation is parallel to a criminal antitrust probe of such activities being conducted by the Justice Department.

The article reports on securities fraud charges filed against UBS Financial Services by Massachusetts Secretary of State William Galvin in 2008. It says the move is in the first state-level lawsuit against an investment company over auction-rate securities. The firm was sued for selling retail investors auction-rate paper as liquid, safe, money-market instruments even though the defendants knew it was not. The complaint requests that UBS be ordered to return to investors the money it invested in auction-rate securities at par.

The article reports that Municipal Securities Rulemaking Board launched a pilot version of the online portal EMMA on March 31, 2008. It is stated that EMMA is a free online portal which will provide investors with price information on municipal securities. The author shares that in the second phase of EMMA, broker-dealers will be required to file official statements for new municipal issues while in the third phase, market participants will be provided with secondary market disclosure documents.

The article discusses the increase in private-activity bond caps in the U.S. to $28.48 billion in 2008 from $28.19 in 2007. The increase comes as the Census Bureau released its new population estimates for 2007 and after the U.S. Internal Revenue Service issued a revenue procedure. The private-activity bonds, which are tax-exempt bonds issued by or on behalf of local or state government for the purpose of providing special financing, was also triggered by inflation and cost-of-living adjustment for states with smaller populations.

The article reports that several justices of the U.S. Supreme Court are planning to overturn the appellate court ruling for the 2006 case of Kentucky versus Davis, which found the state's favorable tax treatment of its bonds unconstitutional. Based on the oral arguments presented on November 5, 2007, the policy of the state of Kentucky for taxing interest on out-of-state bonds has violated the dormant commerce clause of the U.S. Constitution.

The article focuses on the consequences of forcing more than 40 U.S. states to eliminate preferential tax treatment for their bonds according to attorneys for Kentucky in a brief issued to the U.S. Supreme Court. The Court will review a municipal bond dispute challenging Kentucky's policy of taxing interest on out-of-state bonds while exempting interest on debt. The National Federation of Municipal Analysts contended that single-state mutual funds in 42 states are at risk if the Court rules against Kentucky.

The article reports that the U.S. Supreme Court can not decide whether to review a high-profile Kentucky municipal bond case until a decision of the case is rescheduled. A married couple is involved in the case who successfully sued the state for taxing the interest on municipal bonds sold by out-of-state issuers. According to legal experts, the Supreme Court has to agree to a review of the decision because there are conflicting state decisions on the matter.

A federal judge in Birmingham last week denied motions filed by two former JPMorgan bankers to dismiss a Securities and Exchange Commission suit that alleges they committed securities fraud in connection with municipal bond and swap transactions with Jefferson County, Ala. [ABSTRACT FROM AUTHOR]

WASHINGTON The Securities and Exchange Commission is defending its antifraud authority over certain interest-rate swaps and urging a federal judge not to dismiss its suit against two former JPMorgan bankers for allegedly making more than $8 million in undisclosed payments to secure swaps for the firm with Jefferson County, Ala. [ABSTRACT FROM AUTHOR]

WASHINGTON The Securities and Exchange Commission announced yesterday that it has settled securities fraud and other charges against JPMorgan Securities Inc. and is pursuing charges against two of the firm s former managing directors, Charles LeCroy and Douglas MacFaddin, in connection with muni bond and swap transactions done with Jefferson County, Ala. [ABSTRACT FROM AUTHOR]

The article reports on the refusal of municipal issuers to allow underwriters to pass trade-group fees, the Securities Industry and Financial Market Association's muni assessment, to taxpayers through bond transactions in the U.S. California is not the only state that forbids fee shuffle because Wisconsin, Florida and New York City refused the imposition of the said fees. California Treasurer Bill Lockyer announces his plan to prohibit investment banks from imposing the said fees.

The article reports on the suggestion of Standard & Poor's managing director Robin Prunty for structural changes on the finances of states in the U.S. to avoid fiscal problems.

The article reports on the initiative of Municipal Securities Rulemaking Board (MSRB) to explore the state public pension laws to see if there are common types of disclosures for issuers to submit to its Electronic Municipal Access site in the U.S. The initiative comes when there is a concern on the viability of public pensions and no regulator compiles information on pensions. However, market participants warn that the MSRB is beyond its jurisdiction to consider enhanced pension disclosures.

The article offers information on the quarterly board meeting of U.S. Municipal Securities Rulemaking Board in San Diego, California in which the board was expected whether it should help financial institutions disclose more about their pension plans and liabilities.

The article reports on the fines issued by the Financial Industry Regulatory Authority (FINRA) to three companies including TD Ameritrade Inc., Scottrade Inc., and Fidelity Brokerage Services LLC. It mentions that FINRA fined the firms with the amount of 35,000 U.S. dollars for their failure to reveal the underlying ratings of their insured bonds. It also notes that the firms had accepted the sanctions given to them by FINRA without admitting or denying the findings of the self-regulator.

The article reports that the U.S. Government Accountability Office (GAO) warns on the shortfall of voluntary contributions from states and localities for the Governmental Accounting Standards Board (GASB). Also, the Securities and Exchange Commission (SEC) will vote on final rules for asset-backed securities. It notes that GASB has faced annual funding shortfalls of an estimated 4 million dollars annually but is filled by its parent organization, the Financial Accounting Foundation.

The article offers information on the plan of the U.S. Securities and Exchange Commission, to adopt rules requiring their appointed board members to register with the SEC, that could have a negative effect on the state and local entities. SEC's proposed rules for permanent registration originate from provisions in the Dodd-Frank Wall Street Reform and Consumer Protection Act. Under Dodd-Frank, the registration requirements apply to all municipal advisers, providing advice to municipal entities.

The article reports on the move of the Senate Budget Committee to come up with a plan to address the state financial crisis in Washington, D.C. It states that Federal Reserve Board chairman Ben Bernanke was pressed on whether lawmakers should draft legislation that would allow states to file for bankruptcy. Moreover, the state and local fiscal crises could result in defaults on hundreds of billions of dollars of municipal bonds as projected by analyst Meredith Whitney.

The article reports on the move of bond issuers and their attorneys to have the proposed rules of the U.S. Securities and Exchange Commission (SEC) rejected. It notes that the rules enable the municipal advisers to demand appointed board members of municipal entities who attempt for an issuance of securities to register with the SEC and the Municipal Securities Rulemaking Board (MSRB). Issuers and their advisers are alleged to have warned for a chilling effect on finding volunteers if approved.

The article focuses on the increase of the bond transaction fees faced by Depository Trust Co. (DTC) in Washington. It mentions the negative reactions of the municipal issuers to DTC's overcollection of fees for bond transactions. Meanwhile, it also cites the move of the Government Finance Officers Association (GFOA) by requesting the Securities and Exchange Commission (SEC) to revise the said increase.