Far West

WASHINGTON — Two prominent industry groups are raising strong objections to draft changes the Municipal Securities Rulemaking Board proposed for its Rule G-37 on political contributions that would require dealer-affiliated banks and bank holding company political action committees to disclose the contributions they make to issuer officials.

WASHINGTON — Court documents filed in class action and other lawsuits by issuers’ lawyers who were briefed by attorneys at Bank of America — the one firm that is cooperating with the Justice Department’s antitrust probe in return for indemnity from criminal charges — present a disturbing picture of alleged widespread collusion between dozens of firms involved with municipal investment contracts and derivatives.

SAN FRANCISCO — Los Angeles Mayor Antonio Villaraigosa last week proposed borrowing to speed construction on $20 billion of mass transit projects approved by Los Angeles County voters last year.

SAN FRANCISCO — It was a strange day yesterday in the world of California finance, as the state treasurer’s office announced a sudden Build America Bonds sale while the state’s finance director said he planned to resign.

WASHINGTON — A large local school district that cannot issue the qualified school construction bonds the Internal Revenue Service allocated to it will lose the allocation unless it transfers it to the state, which can then carry it forward indefinitely, an IRS attorney said last week.

The federal grand jury's indictment against Beverly Hills-based CDR Financial Products Inc., its founder David Rubin, and current and former officials at the firm for allegedly rigging bids for investment and derivatives contracts in return for kickbacks could be just the tip of the iceberg, market participants said yesterday.

States will struggle with finances in fiscal 2011 just as much as they have this fiscal year and last fiscal year, panelists said at a meeting here Friday sponsored by Tax Analysts.

A major component of the compliance questionnaire the Internal Revenue Service plans to send to issuers of Build America Bonds will examine how issuers are complying with the rule that all BAB project proceeds go towards capital expenditures, an IRS official said here Friday.

After digesting a revised $7.67 billion in new volume last week, the municipal market will face an estimated $9.59 billion this week, according to Ipreo LLC and The Bond Buyer, as the California market again takes center stage — this time with a $1.5 billion sale of general obligation bonds catering to retail investors.

WASHINGTON — Congress last night was poised to approve a second stopgap measure to fund the federal government, including transportation and bond-related programs, for another seven weeks.