Far West

Smaller banks and securities firms are urging the Municipal Securities Rulemaking Board not to shorten its current 15-minute trade reporting deadline or make changes to current trade reporting procedures.

While Central Falls, RI, and Pittsburgh see light at the end of their tunnels, other tales of municipal distress from Harrisburg to California are much messier.

The Internal Revenue Service's tax-exempt bond office has issued a report that examines the potential problems that can occur during the three main phases of a bond transaction and suggests how issuers can avoid them. But some lawyers attending the National Association of Bond Lawyers' 13th annual Tax and Securities Law Institute questioned whether the IRS should be writing a report that is oriented toward providing best practices rather than the tax law.

Though sequestration prevented two federal regulators from sharing their perspectives, other panelists speaking to bond lawyers in San Francisco predicted more enforcement and whistleblower activity.

Simultaneous announcements that Los Angeles-based Anschutz Entertainment Group is no longer for sale and the resignation of president and chief executive Tim Leiweke fueled speculation about the future of a professional football stadium proposed for downtown Los Angeles by the firm.

The Securities and Exchange Commission is still months away from finalizing its definition of municipal advisor, but is poised to step up muni bond enforcement efforts in general, the head of the SEC's Office of Municipal Securities told bond lawyers meeting here.

The recent settlement by Illinois with the Securities and Exchange Commission on charges of shoddy pension disclosure will lead to better disclosure overall and boost the credit of the entire municipal securities market, according to a report Moody's Investors Services released Friday.

The Senate Budget Committee Democrats' budget resolution for fiscal year 2014 suggests the possibility of percentage or dollar caps on tax preferences such as tax-exempt muni bond interest, pushes traditional tax-credit bonds for transportation, and proposes a $10 billion infrastructure bank to provide loans and loan guarantees for projects.

The Supreme Court's 2010 Citizens United ruling should alleviate concerns by the Municipal Securities Rulemaking Board that additional regulation of bond ballot campaign contributions could violate free speech protections guaranteed by the First Amendment, according to the National Association of Independent Public Finance Advisors.

The Los Angeles City Council approved plans for a downtown street car last Wednesday that include up to $352 million over 30 years for operations costs, according to news reports.