CHICAGO — Securities and Exchange Commission officials downplayed the potential for the so-called budget "sequestration" Thursday, but said dealers selling Build America Bonds should inform investors of any potentially risky call provisions.

"I think it's been overblown," John Cross, director of the SEC's office of municipal securities, said of the likelihood that $1.2 trillion in automatic, across-the-board federal budget cuts over 10 years will be triggered on Jan. 2.

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