Far West

The California State Controller's Office has filed a motion in the Vallejo, Calif., bankruptcy case, saying state intercept funds should be used to protect debt owners.

Faced with the loss of stimulus aid, state and local governments are hoping the economy will rebound in time to support their budgets and defuse market concerns over credit downgrades and possible bond defaults, market participants said in their outlooks for 2011.

The Municipal Securities Rulemaking Board and the Commodity Futures Trading Commission are in a jurisdictional dispute over which agency will regulate municipal swap advisers, sources said.

The National Federation of Municipal Analysts has filed another brief in the Vallejo, Calif., bankruptcy case in support of bond insurer National Public Finance Guarantee.

WASHINGTON — Improving economic conditions are likely to put new stresses on the nation’s roads, airports and ports in 2011, but congressional gridlock could stymie efforts to pass already delayed funding packages for capital investments in surface transportation and the air-travel network.

SAN FRANCISCO — A Superior Court judge has granted a restraining order temporarily blocking city and state transportation officials from inking the Presidio Parkway Project deal to upgrade the main roads linking the Golden Gate Bridge with San Francisco.

The Securities and Exchange Commission last week approved a Municipal Securities Rulemaking Board proposal to extend its Rules G-17 on fair dealing and G-5 on disciplinary actions to muni advisers.

WASHINGTON — Next year could bring some of the most significant changes in the municipal securities market in 35 years as regulators try to fulfill a vast array of mandates under the Dodd-Frank Wall Street Reform and Consumer Protection Act, and Congress weighs potentially expanded federal oversight of the market.

WASHINGTON — President Obama has signed into law a short-term extension of federal government spending, including funds for bond-related programs, through March 4. The continuing resolution will prevent a government shutdown and continue programs until after Republicans assume control of the House and begin wielding more power in the Senate.

SAN FRANCISCO — The Asian Art Museum Foundation won 30 days of breathing room Tuesday to negotiate accelerated payments after the expiration of a letter of credit from JPMorgan Chase & Co. that the San Francisco institution had used to back $120 million of bonds.