Far West

Municipal bond and city interests are spending the final hours before the fiscal cliff deadline watching and waiting, remaining hopeful that lawmakers will agree on a slimmed-down last-minute deal not including any threats to the muni interest tax exemption.

Market participants wonder if the Justice Department will indict more firms and individuals for bid-rigging of bond-related investment and derivatives contracts.

A federal ruling will allow the $5.2 billion Honolulu elevated rail transit project to move forward, securing $1.5 billion in federal funding approved on Dec. 20.

Hawaii Senate president Shan Tsutsui was named lieutenant governor replacing Brian Schatz, who will fill the late U.S. Sen. Daniel Inouye's vacant position.

The Internal Revenue Service's tax-exempt bond office plans to continue to invest significant resources in identifying abusive transactions in the municipal bond market in 2013.

Poseidon Resources, the builders of a seawater desalination plant in California, pulled off a $734 million bond sale in the midst of a massive sell-off.

Nevada's state agencies surpassed a cap placed on budget requests by Gov. Brian Sandoval by $419 million, 6.5% higher than the governor's spending limits.

Hawaii Gov. Neil Abercrombie Wednesday appointed Lt. Gov. Brian Schatz to fill the U.S. Senate seat left vacant by the death of Sen. Daniel Inouye earlier this month.

Standard & Poor's downgraded Denair Unified School District, Calif., to A from A-plus.

Moody's Investors Service affirmed Santa Barbara, Calif.'s Aa2 issuer rating, but downgraded to A1 from Aa3 the ratings for the city's 2002 certificates of participation and its 2009 airport revenue bonds.