Far West

Market participants urged the Municipal Securities Rulemaking Board to broaden the definition of "sophisticated municipal market professional," saying it should include individuals with muni or fixed-income assets of $25 million, or $50 million in munis and other assets, not $50 million in munis, as the board had proposed.

Due to ongoing budgetary uncertainties, the Securities and Exchange Commission is seeking to lead its municipal securities office with a director who does not report directly to SEC chairman Mary Schapiro, as was mandated by the financial reform law enacted last year.

Washington lawmakers are considering a bipartisan plan that would reduce the state's $2 billion budget shortfall by about one-quarter.

A federal court in New Jersey has approved a $46 million settlement between Wachovia Bank NA, now Wells Fargo Bank NA, and the Securities and Exchange Commission over bid-rigging of municipal-bond related contracts as well as the amounts of restitution that are to go to each of the almost 60 state and local issuers that were defrauded.

Bank downgrades and looming changes to bank collateral requirements under Basil III compelled San Diego-based Point Loma Nazarene University to sell its bonds directly to Bank of America rather than renewing a letter of credit due to expire this month.

U.S. Bank is clawing back debt-service payments it erroneously paid investors after a public arena in eastern Washington defaulted.

Two Republican members of the Securities and Exchange Commission have stalled the Municipal Securities Rulemaking Board's proposed G-17 guidance on fair dealing for underwriters, saying they need more time to analyze the proposal, according to sources.

The Securities and Exchange Commission said late Thursday that it is a "statutory party in interest" in Jefferson County, Ala.'s bankruptcy case and wants to receive all notices and documents filed with the court.

Vernon, the Los Angeles-area city nearly disincorporated by the California Legislature in September, has received two divergent ratings on its $471 million of outstanding electric revenue bonds and a $73 million electric revenue bond issue planned for Wednesday.

Wachovia Bank NA, now Wells Fargo Bank NA, has agreed to pay $148 million to settle securities, tax and other federal and state law violations stemming from fraudulently engaging in secret arrangements with bidding agents to win business from municipalities and profits for itself from the reinvestment of muni proceeds.