Washington

Faced with the loss of stimulus aid, state and local governments are hoping the economy will rebound in time to support their budgets and defuse market concerns over credit downgrades and possible bond defaults, market participants said in their outlooks for 2011.

The Municipal Securities Rulemaking Board and the Commodity Futures Trading Commission are in a jurisdictional dispute over which agency will regulate municipal swap advisers, sources said.

WASHINGTON — Improving economic conditions are likely to put new stresses on the nation’s roads, airports and ports in 2011, but congressional gridlock could stymie efforts to pass already delayed funding packages for capital investments in surface transportation and the air-travel network.

The Securities and Exchange Commission last week approved a Municipal Securities Rulemaking Board proposal to extend its Rules G-17 on fair dealing and G-5 on disciplinary actions to muni advisers.

WASHINGTON — Next year could bring some of the most significant changes in the municipal securities market in 35 years as regulators try to fulfill a vast array of mandates under the Dodd-Frank Wall Street Reform and Consumer Protection Act, and Congress weighs potentially expanded federal oversight of the market.

WASHINGTON — President Obama has signed into law a short-term extension of federal government spending, including funds for bond-related programs, through March 4. The continuing resolution will prevent a government shutdown and continue programs until after Republicans assume control of the House and begin wielding more power in the Senate.

The National Federation of Municipal Analysts is urging market participants to take a critical look at the feasibility studies or appraisals that issuers use and cite in bond documents to support the viability of bond-financed projects.

State and local governments will be able to issue a total of $32.441 billion of private-activity bonds under a national volume cap next year — 5.1%, or $1.584 billion more than in 2010.

Some transaction participants appear to be rushing to market questionable Build America Bond, bank-qualified or other municipal bond deals before tax incentives expire at the end of the year and risking Internal Revenue Service enforcement action for violations of tax requirements, according to market sources.

The Securities and Exchange Commission Monday proposed a lengthy new rule to establish a permanent registration system for municipal advisory firms as well as individual advisers that would replace a temporary system for firms the SEC put in place in September.

The Senate is expected to vote Tuesday on a measure to keep the federal government and some of its bond-related programs funded through March 4, by which time Republicans will control the House and wield considerable bargaining power in the Senate.

WASHINGTON — The outlook for public power utilities is uncertain for next year, as federal regulators ramp up efforts to implement greenhouse-gas regulations and states and regions push for developing more renewable energy sources.

WASHINGTON — Municipal market participants are disappointed that the tax bill signed into law by President Obama Friday does not extend the Build America Bond program and other key bond-related tax incentives, but will urge lawmakers to reconsider them next year.

WASHINGTON — Bank of America, now Bank of America Merrill Lynch, has returned more than $6.7 billion to its auction-rate securities customers and satisfied its obligations under a settlement announced Thursday with the Securities and Exchange Commission over alleged abusive ARS sales practices.

WASHINGTON — Three former executives of General Electric Co. subsidiaries — Dominick Carollo, Steven Goldberg and Peter Grimm — will stand trial in March 2012 for allegedly participating in wire-fraud schemes and conspiracies in connection with the bidding for investment contracts for municipal bond proceeds over a seven-year period.

WASHINGTON — The Municipal Securities Rulemaking Board is giving the market advance notice that, as of Feb. 14, it will begin requiring dealers acting as underwriters, placement agents, or remarketing agents to provide its EMMA website with certain information about the continuing disclosure agreements for new bond issues.

The House is expected Thursday to take up an $857 billion tax package that contains neither an extension of the Build America Bond program nor the increased small issuer limit for bank-qualified bonds, both of which expire Dec. 31.

Overall tax-exempt and taxable municipal bond issuance will increase to more than $502 billion next year from $435 billion this year if the Build America Bond program expires on Dec. 31, according to an annual survey conducted by the Securities Industry and Financial Markets Association.

The Financial Industry Regulatory Authority has censured and fined New York-based Citigroup Global Markets Inc. $400,000 for violations of securities rules involving municipal and corporate bonds.

Senate Democrats are pushing for an omnibus appropriations measure to keep the federal government and bond-related programs funded through Sept. 30, the end of fiscal 2011, instead of moving forward with a continuing resolution that was approved by the House last week.