Financial regulations

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 its proposals should be approved, despite objections from dealers and municipal advisors.

The MSRB will ask for market feedback on potential interpretive guidance related to a practice the board worries may impair market liquidity.

The Securities and Exchange Commission's decision not to extend the effective date of new markup disclosure requirements is disappointing to dealer groups, which have pushed hard for months for a delay.

A Securities and Exchange Commission proposal that may trigger additional MSRB rulemaking is open for comment, and the MSRB is scheduled to discuss it next week.

Muni market groups told the MSRB that its latest FAQs about municipal advisors need to more clearly integrate existing guidance from both the board and the SEC to avoid creating confusion.

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.

Some worry that MSRB's late release of an updated set of FAQs on markup disclosure requirements will hinder their meeting the May 14 effective date.

MSRB publishes a resource document after deciding not to take regulatory action on minimum denominations.

Market participants want the Municipal Securities Rulemaking Board's compliance guidance to be clear and within the scope of its authority.

The Senate Banking Committee had approved Powell already in December, but a revote was necessary after the Senate adjourned for the year without finalizing his confirmation.

Sen. Elizabeth Warren, D-Mass., was the only member of the Senate Banking Committee to oppose the nomination of Federal Reserve Board Gov. Jerome Powell to lead the central bank.

The SEC's Office of Compliance Inspections and Examinations found municipal advisors had trouble meeting registration, books and records and supervisory requirements.

Several big names in the muni market will be part of a new SEC committee

The Senate invoked cloture to begin the process of confirming Randal Quarles as a governor on the Fed board.

The breach occurred in 2016, but was not publicly addressed by the SEC until Sept. 20.

Lucy Hooper, a member of the MSRB since 2014, will take the helm as chair effective Sunday.