WASHINGTON — The House Financial Services Committee plans to examine state and local government budget shortfalls and the possibility of bond defaults in the municipal market, according to a 22-page draft of its oversight plans for the 112th Congress that chairman Rep. Spencer Bachus, R-Ala., has circulated among Republican panel members.

The chairman’s plans for the committee surfaced as the House Oversight and Government Reform Committee’s panel on TARP and financial services and House Judiciary Committee staff have already announced plans to hold hearings on the state and local fiscal problems and municipal debt.

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