Far West

California's Assembly speaker has introduced a bill to disincorporate the Los Angeles County city of Vernon, which has a tiny population but more than $500 million of outstanding bond debt.

The Municipal Securities Rulemaking Board is initiating a study of the municipal market with an emphasis on pre-transaction pricing efficiency and liquidity, Securities and Exchange Commission member Elisse Walter announced Tuesday.

Bank of America Merrill Lynch agreed to pay more than $137 million, as well as to take remedial steps, in unprecedented enforcement actions announced Tuesday to settle charges from four regulators.

Rep. Spencer Bachus was formally selected by the Republican Steering Committee on Tuesday to serve as chairman of the House Financial Services Committee next year, beating back a challenge from Rep. Ed Royce, R-Calif.

While federal lawmakers are nearing a compromise on tax legislation that would extend many expired and expiring tax provisions as well as the Bush-era tax cuts, it is not certain the measure will continue the popular Build America Bond program, sources said.

The Natomas Unified School District in Sacramento County, Calif., missed a deadline last month that triggered the process for a state bailout.

WASHINGTON — The Municipal Securities Rulemaking Board plans to propose a draft pay-to-play rule for municipal advisers by the end of the month that will mirror existing political contribution restrictions imposed on dealers under its Rule G-37, chairman Michael Bartolotta told reporters in a conference call Monday morning.

SAN FRANCISCO — The city attorney of San Francisco has sent a shot across the bow of both JPMorgan Chase & Co. and MBIA in the form of threatening letters over their involvement in the Asian Art Museum’s financial crisis.

ALAMEDA, Calif. — California’s budget deficit is so big, two governors are working on it.

WASHINGTON — The president’s deficit reduction commission Friday voted 11 to 7, failing to get a supermajority to move forward with its report.