WASHINGTON - The Municipal Securities Rulemaking Board this week will discuss how to proceed with draft rule changes it proposed in May to address an issue that surfaced when Lehman Brothers filed for bankruptcy last year and profits were withheld from syndicate members in muni transactions senior managed by the firm.

At its three-day meeting that begins today in San Francisco, the board will consider comments it received on the draft changes, said MSRB executive director Lynnette Hotchkiss. The draft changes to its Rule G-11 on uniform practices and G-12 on new syndicate practices would speed up the timetables for syndicate managers to disburse profits to the other syndicate members as well as for settlements of so-called secondary market trading accounts.

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