Washington

WASHINGTON - State and local groups are sizing up the new congressional deficit reduction committee, determined to preserve tax-exemption for municipal bonds but acknowledging that federal funds for some of their programs will likely be cut.

Washington is bracing for a slowdown after July-August revenues came in 1.3% lower than June’s forecast, the Economic and Revenue Forecast Council said.

WASHINGTON - Lurking in the legislative weeds on Capitol Hill is another threat to states' and localities' ability to fund bond-financed and other transportation projects.

WASHINGTON - The Internal Revenue Service has closed an audit of the Highlands County Health Facilities Authority's 2005 refunding bonds with no change to their tax-exempt status.

Moody's Investors Service is proposing changes to its methodology for rating public power companies, which are not happy about the potential effect on their bond ratings.

Though he is "cautious" about the need for more monetary action since "we do not yet have enough information to conclude the economy won't resume a healthier pace of growth," Federal Reserve Bank of Atlanta president Dennis Lockhart Monday said the Fed has the tools, if needed, to ease policy.

WASHINGTON — The Financial Industry Regulatory Authority fined eight firms a total of $120,000 and asked two to pay almost $6,000 in restitution to customers for violating muni pricing, gift, trade, fair-dealing, and supervisory rules.

Alan D. Polsky, senior vice president of Minneapolis-based Dougherty & Co. and former chair of the National Federation of Municipal Analysts, will become chairman of the Municipal Securities Rulemaking Board beginning Oct. 1, according to market sources.

CHICAGO - Nonprofit health care issuers already bracing for steep government reimbursement cuts from the new federal health care law now face a new round of cuts tied to the debt-ceiling deal.

WASHINGTON - Morgan Stanley is poised to pay $6.5 million to settle charges made in a series of antitrust lawsuits that municipal issuers have filed over alleged bid-rigging of muni bond-related investments, even though the issuers do not appear to have found evidence showing the firm engaged in bid-rigging.

The Internal Revenue Service has issued procedures for its agents on how to apply the voluntary closing agreement program to Build America Bonds and other direct-pay bonds, such as resource recovery zone economic development bonds.

Indian tribes are criticizing the Treasury Department for failing to complete, within the congressionally mandated time frame, a study of the tax law requirements for tribal economic development bonds that the tribes claim are unfair.

The Municipal Securities Rulemaking Board has asked the Securities and Exchange Commission to approve its new proposal for a permanent 21-member board, which would have a majority of public members.

Washington Gov. Christine Gregoire has asked state agencies to prepare for 10% in spending cuts for the next budget.

WASHINGTON - Rep. Maxine Waters, D-Calif., has asked the Securities and Exchange Commission to investigate whether Standard & Poor's disclosed its downgrade of U.S. debt to certain financial institutions before it made the information public.

WASHINGTON - A bond lawyer group said Wednesday that while issuers technically do not have to file material event notices on rating changes for pre-refunded bonds that have been legally defeased by an escrow of U.S. Treasuries, they can easily file such notices with the Municipal Securities Rulemaking Board's EMMA system.

The Internal Revenue Service has opened an audit of $31 million of health center revenue bonds issued in 2005 by the Lebanon County, Pa., Health Facilities Authority to refund bonds previously sold in 1999 for a retirement facility.

The Municipal Securities Rulemaking Board floated proposals Wednesday to ban false and misleading advertising by municipal advisors and require them to create written records of their advisory engagements.

WASHINGTON - The Senate Banking Committee is looking into Standard & Poor's downgrade of U.S. debt, a committee aide said Tuesday. The committee is gathering information on the rating agency's action, the aide added.

WASHINGTON - Municipal issuers who do not comply with their continuing disclosure agreements should be penalized, the Municipal Securities Rulemaking Board told the Securities and Exchange Commission Monday.