Washington

Efforts to extend the Build America Bonds program and other temporary bond provisions enacted as part of last year's stimulus act took a major step backwards last week when Senate Democrats tabled the tax package including the extensions after yet another failed procedural vote.

WASHINGTON — Financial regulatory reform legislation that House and Senate lawmakers hope will be ready for President Obama's signature at the end of the week is expected to authorize sweeping changes to the way the municipal market is regulated.

WASHINGTON — The U.S. Court of Appeals for the Fourth Circuit last week ruled in favor of Prince George's County, Md., and its 2008 plan to furlough about 5,900 workers, overturning a lower federal court ruling and restoring a savings opportunity for the triple-A rated county.

WASHINGTON — The Supreme Court yesterday ruled that “honest services” fraud — a criminal statute that has been used to prosecute wrongdoing in the municipal market — is limited to bribery and kickback schemes.

WASHINGTON — Military housing bond issuers should keep an eye on Build America Bonds as likely competition as they attempt to reclaim a spot in the bond market — and the military may have a need for $25 billion of new housing debt in the future, panelists said yesterday at The Bond Buyer's Fifth Annual Financing Military Housing Privatization Conference.

WASHINGTON — Proposed extensions to major bond provisions have survived several revisions of pending tax legislation, but municipal market participants are wondering if more controversial, non-bond provisions could scuttle the entire package.

The Municipal Securities Rulemaking Board launched a redesigned website this week with new content and features, better navigation, and a contemporary style that aims to provide improved access to information about MSRB rules, market disclosures, and data collected and disseminated by the board.

WASHINGTON — At least $300 million in funding to the Washington Metropolitan Area Transit Authority for its 2011 fiscal year budget is at risk over a dispute between Northern Virginia municipalities and Gov. Robert F. McDonnell over his request to appoint half of Virginia's share of the WMATA board of directors.

WASHINGTON — The inclusion of a free, real-time feed of municipal bond ratings on the Electronic Municipal Market Access system has long been a goal of the Municipal Securities Rulemaking Board, which operates the disclosure and transparency portal.

The two Democrats leading the House-Senate conference working to hammer out a single financial regulatory reform bill stressed yesterday that conferees need to wrap up their work by tomorrow to ensure passage of the bill through each chamber next week, before lawmakers break for the July 4 recess.

State and local governments will continue to face trying fiscal conditions next year, characterized by stubbornly high unemployment and slower economic growth, according to the Securities Industry and Financial Markets Association’s semiannual economic outlook.

WASHINGTON — State plans for high-speed rail lines are in danger due to a lack of stable funding and underdeveloped federal leadership and guidance, according to a new report by the Government Accountability ­Office.

The Internal Revenue Service has closed an audit of $119.2 million of student loan bonds issued by the Massachusetts Educational Financing Authority with no change to the tax-exempt status of the debt.

WASHINGTON — A two-year extension to the Build America Bonds program, as well as extensions to a handful of other bond provisions set to expire at the end of the year, remain in legislative limbo as Senate Democratic leaders this week continue attempts to produce a tax bill that they can pass.

WASHINGTON — The executives of United and Continental airlines yesterday assured members of the Senate Commerce, Science, and Transportation Committee that airline service would not be cut if their companies merge.

WASHINGTON — A Republican proposal that would have allowed the Build America Bond program to expire at the end of the year was defeated yesterday, as Senate lawmakers continued working toward passing legislation to extend several expiring tax breaks, including for BABs.

WASHINGTON — House and Senate conferees meeting to hammer out a financial regulatory reform bill appear to have reached an agreement that would allow the Municipal Securities Rulemaking Board to regulate financial advisers and other market intermediaries.

WASHINGTON — The Securities and Exchange Commission is stepping up its enforcement efforts in the municipal securities market for the first time in more than a decade, with a staff of roughly 30 attorneys charged with investigating and trying muni and public pension fund cases.

House conferees meeting to hammer out compromise financial regulatory reform legislation potentially handed the Securities and Exchange Commission at least two significant victories yesterday: the authority to self-fund its operations without annual appropriations from Congress and the authority to register and regulate municipal financial advisers.

The nascent nationwide push for high-speed rail still needs a specific funding plan and a mix of federal, local and private sources are now being explored, U.S. Department of Transportation officials said yesterday.