Midwest

Michigan on Monday appointed financial review teams to examine the finances of two Detroit metro area governments – Royal Oak Township and Highland Park – launching the next step in a process that could lead to a state takeover.

With the market focused on Illinois ahead of a Tuesday vote on a pension system fix, the state has announced plans to take competitive bids on $350 million of taxable general obligation bonds next week to meet ongoing capital funding needs.

Illinois lawmakers convene Tuesday to vote on a package of reforms agreed to by their leaders with the aim of stabilizing a pension system saddled with $100 billion of unfunded obligations.

Illinois General Assembly leaders met Tuesday in their continuing effort to hash out a pension overhaul in anticipation of a vote next week during a possible special session.

Standard & Poor's revised its outlook to negative from stable for Cleveland Public Power on Wednesday in light of the system's weakened debt coverage levels and growing competition.

The bankruptcy judge overseeing Detroit's Chapter 9 case delayed a ruling on a $160 million borrowing plan to finance the city's lighting system due to possible conflict of interest by public finance firm Miller Canfield Paddock and Stone PLC.

A group of Detroit's creditors, including bond insurers, asked the bankruptcy court overseeing the city's case to appoint a committee to assess the value of the city art collection and propose ideas for monetizing it.

The Chicago City Council overwhelmingly approved a $7 billion 2014 budget that is balanced but with little buffer to absorb a $600 million pension payment spike looming in 2015.

Indianapolis, which has privatized its water, sewer and parking systems, is now eying a public-private partnership for the city's parks.

The Securities and Exchange Commission has charged Detroit-based Ambassador Capital Management and portfolio manager Derek Oglesby with fraud for investing in risky securities and passing them off to investors, including municipalities, as safe money market funds.