WASHINGTON — Securities and Exchange Commission officials have told a House Democrat that “the recent problems of municipal bond insurers and the direct and indirect impact on municipal bond investors illustrate once again some of the shortcomings of the regulatory structure of this market.”

SEC chairman Christopher Cox sent Rep. Paul Kanjorski, D-Pa., a Jan. 31 letter, along with a five-page memo dated Jan. 30 and written by Erik Sirri, the commission’s director of trading and markets. It said the SEC is monitoring the affect on the municipal bond market of the rating downgrades of monoline insurers, but noted that disclosure in the muni market “is substantially less comprehensive and less readily available than disclosure by public reporting companies.”

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