Far West

WASHINGTON — The Securities and Exchange Commission is considering scaling back its initial proposed definition of municipal advisor in final registration rules, the agency’s chairman said Wednesday.

Senate Finance Committee chairman Max Baucus wants Congress to consider alternatives to tax-exempt bonds in order to provide uniform subsidies for bondholders, and cites Build America Bonds as a good example.

Five groups representing local governments are urging Senate Finance Committee leaders to maintain the federal tax-exemption for municipal bonds, ensure states and localities retain the authority to set their own tax policies, and refrain from preempting governments and threatening their fiscal health by granting preferential tax treatment to certain industries.

WASHINGTON — The District of Columbia will price $320 million of income tax-secured tax-exempt bonds next week to refund three previous debt issues, district officials said.

A taxpayer with a marginal income tax rate of 7.5% would have been indifferent to purchasing high-rated tax-exempt or taxable corporate bonds last year because there was only a .35% spread between these bonds, a joint Congressional committee concluded in a report issued Monday.

Market participants are stepping up their efforts in support of muni-friendly provisions in the Senate highway bill, as that body prepares to head to conference with the House to resolve differences in legislation each chamber has passed providing funding for the nation's surface transportation programs.

CHICAGO — The Federal Trade Commission's success so far in challenging two high-profile hospital mergers could signal fresh pressure on the sector, which is in the midst of a transforming consolidation trend.

LAS VEGAS — The National Federation of Municipal Analysts presented awards to market participants, including issuers for the first time, at its annual award dinner here Thursday night.

WASHINGTON — A majority of governments, nonprofits, corporations and institutional investors surveyed would either reduce or discontinue their use of money market funds if the Securities and Exchange Commission adopted certain reforms, such as switching to a floating net-asset value, according to a study done for the Investment Company Institute.

Municipal bond issuers now may be more open to declaring bankruptcy and defaulting on loan payments, panelists said at the National Federation of Municipal Analysts annual meeting here Thursday.