Far West

VALLEJO, Calif. — Officials said Thursday that Vallejo is nearing a deal with its largest creditor and is looking at curbing employee benefits as it struggles to climb out of bankruptcy.

WASHINGTON — The Securities and Exchange Commission approved two sets of rules for asset-backed securities Thursday, including one that would apply to certain municipal securities in early 2015.

WASHINGTON — The Utah Housing Corp. has filed a lawsuit against two brokers — CDR Financial Products Inc. and Investment Management Advisory Group Inc. — and eight providers of guaranteed investment contracts, claiming they knowingly engaged in bid-rigging activities to artificially suppress interest rates on investment agreements it purchased for its housing bond proceeds.

WASHINGTON — The Internal Revenue Service on Thursday allocated $400 million of qualified zone academy bonds to states and U.S. territories for 2011.

Fitch Ratings downgraded San Jose redevelopment bonds four notches Tuesday, lowering $1.7 billion in San Jose Redevelopment Agency tax allocation bonds to BBB-minus from A. At the same time, the agency’s housing set-aside tax allocation bonds were downgraded to A from A-plus.

Gov. Sean Parnell wants to tinker with Alaska’s cash cow, offering lower tax rates on petroleum production in the hope of attracting more investment from oil companies.

WASHINGTON — House Transportation Committee chairman Rep. John Mica said Wednesday that he will introduce a multiyear surface transportation bill later this year that includes Build America Bonds.

WASHINGTON — Claims that states and localities are facing massive budget gaps, unfunded pension liabilities, and health care costs that will lead to bond defaults and bankruptcy filings are greatly exaggerated, and mask the need for states to overhaul out-of-date tax systems and make other structural changes, a new report warns.

SAN FRANCISCO — The city of Vallejo, Calif., filed a plan to exit bankruptcy that proposes to pay unsecured creditors 5 to 20 cents on the dollar.

The Municipal Securities Rulemaking Board held an informal roundtable with market groups late last week and is planning another one in September as well as two teleconferences, leading some to compare the discussions to the former Muni Council.