Washington

The Securities Industry and Financial Markets Association is calling for changes to the so-called Volcker Rule.

President Obama's $3.8 trillion fiscal 2013 budget alarmed the muni market by proposing to reduce the value of tax-exempt interest and other tax preferences to 28%.

The Internal Revenue Service has told the Nebraska Public Power District that $10 million of the $50.36 million of Build America Bonds it issued in June 2009 may not qualify for the 35% interest subsidy it receives from the Treasury Department because of a dispute over the issue price of the bonds.

SAN FRANCISCO – State officials have begun an early effort to find ways for California, Washington and Oregon to save money by cooperating on financing future infrastructure projects pegged in the hundreds of billions of dollars.

While members of Congress have been loathe to take the politically unpopular step of raising the federal gas tax, which provides revenue for bond-financed roadwork and other highway projects, a number of states have increased their gas taxes during the past few years.

WASHINGTON — As part of its initiative to gauge compliance with arbitrage requirements, the Internal Revenue Service is auditing $43.45 million of Series 2006 general obligation refunding bonds that were issued by the St. Vrain Valley, Colo., School District in April 2006 to advance refund its Series 1997 bonds.

SAN FRANCISCO — The University of Washington, a top-notch credit, will hit a supply-constrained municipal debt market Wednesday with $271.3 million of bonds for refinancing and to fund various construction projects.

The Municipal Securities Rulemaking Board has drafted an interpretive notice warning underwriters of new bonds that they may violate the fair-dealing rule if they agree to eliminate a reserve fund or take other actions for the new bonds that could hurt existing parity bondholders, without authorization from bond documents.

WASHINGTON — The Internal Revenue Service is auditing $31.59 million of Series 2004A first mortgage revenue bonds that were issued by the St. Johns County Industrial Development Authority in August 2004 to help Presbyterian Retirement Communities Inc. and its affiliates finance improvements to eight retirement centers in Florida.

The Financial Industry Regulatory Authority highlighted "key risk areas" for muni broker-dealers, warning that its exams will focus on whether incomplete disclosures and financial information from an issuer prevent retail customers from making informed investment decisions.

A group of Democrats and an independent lawmaker in the Senate have introduced a bill that would codify the so-called Buffet Rule by imposing a minimum 30% tax rate on taxpayers whose adjusted gross income exceeds $1 million, including capital gains and dividends.

Washington saved 14% during a $978 million refunding bond sale on Tuesday — the largest refunding in the state’s history. The state treasurer’s office said it achieved more than $154 million in present-value savings from the debt refunding.

WASHINGTON — Rep. Tim Huelskamp, R-Kan., has introduced legislation that would repeal the individual alternative minimum tax, potentially lowering the borrowing cost and improving the marketability of private-activity bonds.

President Obama's fiscal 2013 budget will propose a 28% cap on the value of tax preferences, including tax-exempt interest for municipal bonds, according to knowledgeable sources.

Market participants slammed a proposal to assess a fee on broker-dealers to help finance the Governmental Accounting Standards Board, differing about whether regulations on dealers should be permitted to pass the fee along to other market participants, including issuers.

Municipal Securities Rulemaking Board officials detailed a series of initiatives designed to increase price transparency for retail investors and improve disclosure of conflicts of interest, information about bank loans, and payments made to or received by underwriters and municipal advisors.

In a direct rebuke to industry groups and a push-back against two Republican Securities and Exchange Commission members who engaged in stalling tactics, the Municipal Securities Rulemaking Board vigorously defended its proposed guidance on fair-dealing for underwriters.

Senior White House economic advisors have told state and local officials that tax-exempt bond interest is "off the table" and will not be part of the administration's proposed 28% cap on the value of exclusions, deductions and other tax preferences for wealthy taxpayers, according to those familiar with the discussions.

WASHINGTON — Though the national infrastructure bank proposed in President Obama's American Jobs Act met with a frosty reception from Republican lawmakers, there is some support among transportation industry lobbyists and academics for various bank bills pending before both chambers of Congress.

A day after Transportation Secretary Ray LaHood stunned the transportation community by saying it is "highly unlikely" Congress will pass a long-term reauthorization bill to fund highway and transit programs this year, lawmakers and industry lobbyists vowed to keep pushing for such legislation despite considerable obstacles.