The muni market officially got much of what it has spent years fighting for on Thursday, when President Trump signed the banking bill that makes tradable, investment grade municipal securities high-quality liquid assets under federal banking rules.
The bank deregulatory bill passed by Congress on Tuesday would also make fewer banks systemically important and close a legal loophole that had allowed banks to defraud Puerto Rico investors.
A deal struck between House and Senate leaders could lead to a vote as soon as next week on a banking bill that would classify munis as high-quality liquid assets and make them more attractive investments for banks.
GAO says Congress should consider giving SEC penalty authority over issuers, stripping Puerto Rico's triple-tax exemption,and expanding investor protection.
Jessica Kane's appointment as director of the Office of Credit Ratings suggests that Rebecca Olsen could remain acting or become permanent chief of the Office of Municipal Securities.
The MSRB said the paper was prompted in part by the tax law's prohibition on advance refundings and the fact that interest rate swap rules intersect with the board's rules for municipal advisors.
The National Association of State Treasurers is using infrastructure finance as an argument to urge lawmakers to pass legislation reclassifying some munis as high-quality liquid assets.
