CHICAGO -- Ohio Auditor David Yost warned local governments to tread carefully when talking about their financial conditions, calling this week’s Securities and Exchange Commission’s charges against Harrisburg, Pa. a “watershed moment” for local politicians.

“The SEC hasn’t traditionally looked at politicians’ public comments,” Yost said Wednesday in a telephone interview with The Bond Buyer. “In the private sector, that’s long been understood, and that’s why CEOs have lawyers read their speeches. The fact that in their report the SEC specifically refers to the mayor’s state of the city address is a watershed moment.”

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