Jack Casey

The Municipal Securities Rulemaking Board is asking the Securities and Exchange Commission to approve its slightly revised proposal to lengthen board members’ terms to four years from three.

Only Congress can take the necessary steps to fully resolve Puerto Rico's debt crisis, Treasury Secretary Jack Lew said in a letter to congressional leadership on Friday.

The Securities and Exchange Commission has charged State Street Bank and Trust Co., the former head of its public funds group, and a lawyer-lobbyist with securities fraud for making illicit payments and campaign contributions to obtain Ohio pension fund business worth millions.

A Securities and Exchange Commission proposal designed to bolster liquidity risk management among open-end funds would likely reduce the funds' appetite for municipal securities and deter infrastructure projects, the Government Finance Officers Association warned.

The Municipal Securities Rulemaking Board on Tuesday released a regulatory notice detailing new core conduct requirements for municipal advisors.

The Puerto Rico Electric Power Authority will run out of money in the first half of 2016 if it cannot get creditors to agree to a financial restructuring plan, PREPA chief restructuring officer Lisa Donahue said at a House panel hearing on Tuesday.

The Municipal Securities Rulemaking Board had $69.52 million of net assets at the end of September, nearly triple the $25.94 million it had five years ago, according to MSRB financial documents.

Christopher Brogdon, facing Securities and Exchange Commission charges for defrauding investors in senior living facility financings, has been ordered by a federal court in New Jersey to create a plan to pay those investors.

Lisa Donahue, the chief restructuring officer for the heavily indebted Puerto Rico Electric Power Authority, will be one of four panelists testifying at a House Natural Resources Committee panel hearing on Jan. 12 about the commonwealth’s energy problems.

The Municipal Securities Rulemaking Board is seeking comment on a proposal it says would lessen the effect of interdealer transaction failures on the municipal market while providing needed changes to an outdated rule.

Two House Natural Resources Committee panels will hold hearings on Puerto Rico this month to discuss the possibility of energy reform and federal oversight for the ailing commonwealth, according to a committee spokesperson.

Municipal market groups are ready to band together in 2016 to show the Securities and Exchange Commission that they can improve disclosure practices without increased regulation, even as the commission is set to continue publishing settlements with underwriters and issuers who have failed to comply with their continuing disclosure obligations.

Puerto Rico Gov. Alejandro García Padilla announced on Wednesday that the commonwealth will default on $37.3 million out of nearly $1 billion of debt payments due on Jan. 4, a “mild” default, according to one analyst, and one that could threaten the governor’s plans congressional help.

Municipal market participants will once again see an active year for enforcement in 2016 as the Securities and Exchange Commission's self-reporting initiative largely wraps up and the enforcement division mixes a continued focus on pricing and market structure actions with potential new areas for enforcement like municipal advisors and bank loans.

Senate Minority Leader Harry Reid, D-Nev., made a final pitch on Thursday for lawmakers to include provisions to help Puerto Rico with its debt crisis in the pending omnibus spending bill, calling it “the moral thing to do.”

House Speaker Paul Ryan, R-Wis., said on Wednesday night that he is instructing all House committees that have jurisdiction over Puerto Rico to work with commonwealth officials to come up with a “responsible solution” for their fiscal and debt crises by the end of March.

The Municipal Securities Rulemaking Board filed proposed rule changes with the Securities and Exchange Commission on Wednesday to extend its political contributions rule to non-dealer municipal advisors and MAs soliciting business for dealers, advisors or investment advisors.

The omnibus spending bill for fiscal 2016 fails to contain any significant help for Puerto Rico, but that should come as no surprise as Republicans and Democrats are still divided over the approach that should be taken, said knowledgeable sources.

Assured Guaranty’s chief executive officer is blasting the Treasury Department for pushing for bankruptcy protection for Puerto Rico, claiming the effort is blowing up utility authority negotiations with creditors and bondholders, as well as hurting the territory and alarming the municipal bond market.

Dealer groups want the Municipal Securities Rulemaking Board and Financial Industry Regulatory Authority to adopt the same approach, but one that is less costly and burdensome, for requiring dealers acting as principals to disclose to retail customers the markups and markdowns on muni trades.