Far West

Uncertainty over what happens next for redevelopment agencies in California has prompted Moody's Investors Service to downgrade $11.6 billion of tax allocation bonds.

The Joint Committee on Taxation released its annual tax expenditure estimates showing $177.6 billion for public-purpose muni bonds over five years, while a governmental group urged President Obama and congressional leaders to "go big" on federal deficit reduction and rely on two reports that proposed curtailing or eliminating tax exemption for new muni bonds.

COMPTON, Calif. — The Compton, Calif., mayor's allegations of fraud at city hall have at least temporarily halted the city's ability to get a line of credit to pay bills, according to officials.

WASHINGTON — The Securities and Exchange Commission should consider seven alternative methods of compensating rating agencies, including one patterned after the Municipal Securities Rulemaking Board, the Government Accountability Office said in a report sent Wednesday to key members of Congress.

WASHINGTON — Securities and Exchange Commission chairman Mary Schapiro told lawmakers Wednesday that the agency is considering whether to exempt all muni issuers, not just states, counties and cities, from federal regulators' joint Volcker rule proposal.

Institutional investors generally trade at more favorable prices than individual muni investors in the secondary market, the Government Accountability Office said in a report sent Tuesday to key members of Congress.

Internal Revenue Service officials are taking a two-pronged approach to address concerns there may be ongoing mispricing of investments and bonds in the muni market.

A public pension disclosure project spearheaded by a bond attorneys' group is expected to reach a critical milestone when it should become clear whether a voluntary coalition of industry participants will reach consensus on the project or produce separate recommendations.

When broker-dealers give money to California school bond campaigns, it appears to be money well spent.

WASHINGTON — The White House is once again asking Congress to increase the federal borrowing limit by $1.2 trillion to avoid hitting the nation's debt ceiling, but the request is sure to trigger another battle on Capitol Hill and possibly threaten the availability of sales of state and local government series securities to municipal issuers.