Far West

Alan D. Polsky, senior vice president of Minneapolis-based Dougherty & Co. and former chair of the National Federation of Municipal Analysts, will become chairman of the Municipal Securities Rulemaking Board beginning Oct. 1, according to market sources.

CHICAGO - Nonprofit health care issuers already bracing for steep government reimbursement cuts from the new federal health care law now face a new round of cuts tied to the debt-ceiling deal.

WASHINGTON - Morgan Stanley is poised to pay $6.5 million to settle charges made in a series of antitrust lawsuits that municipal issuers have filed over alleged bid-rigging of muni bond-related investments, even though the issuers do not appear to have found evidence showing the firm engaged in bid-rigging.

LOS ANGELES - A state audit of the Los Angeles Community College District called into question more than $140 million in district spending funded by three general obligation bond measures approved by voters between 2001 and 2008.

The Internal Revenue Service has issued procedures for its agents on how to apply the voluntary closing agreement program to Build America Bonds and other direct-pay bonds, such as resource recovery zone economic development bonds.

LOS ANGELES - Two rating agencies have downgraded Hawaii this year, but they didn't go far enough, Bank of America Merrill Lynch analysts wrote in an Aug. 5 municipal market commentary, saying the state's general obligation bond rating should be a notch lower than the agencies' double-A level ratings.

Indian tribes are criticizing the Treasury Department for failing to complete, within the congressionally mandated time frame, a study of the tax law requirements for tribal economic development bonds that the tribes claim are unfair.

The Municipal Securities Rulemaking Board has asked the Securities and Exchange Commission to approve its new proposal for a permanent 21-member board, which would have a majority of public members.

Washington Gov. Christine Gregoire has asked state agencies to prepare for 10% in spending cuts for the next budget.

Moody’s Investors Service revised its outlook to stable from positive Tuesday on the Los Angeles Department of Water and Power’s Aa2-rated water system revenue bonds.