Northeast

Morgan Stanley will pay $42.5 million to Massachusetts' pension funds and its general fund in a settlement agreement regarding the financing and securitization of subprime loans in the state.

Massachusetts legislators yesterday evening were set to pass a $27.9 billion fiscal 2011 budget plan that includes an anticipated debt restructuring to lower debt service costs next year.

Morgan Stanley will serve as book-runner on a New Jersey general obligation refinancing deal set to price in the third quarter, beating out 21 other firms for the senior management seat.

The Dormitory Authority of the State of New York gave final and preliminary approval to six bond transactions totaling more than $245 million at its monthly board meeting Wednesday.

The Port Authority of New York and New Jersey is looking to reserves to provide self-liquidity for its commercial paper program, officials said Tuesday.

New York City Mayor Michael Bloomberg on Tuesday appointed former U.S. Treasury official and banker Robert Steel as deputy mayor for economic development.

New Jersey lawmakers Monday evening announced a bipartisan fiscal 2011 budget deal similar to the spending plan that Gov. Chris Christie filed in March.

The Internal Revenue Service has closed an audit of $119.2 million of student loan bonds issued by the Massachusetts Educational Financing Authority with no change to the tax-exempt status of the debt.

Fiscally challenged New York has come through with some subsidies for the cash-strapped Metropolitan Transportation Authority, officials said Monday.

The Massachusetts Department of Transportation yesterday approved a $10.3 billion, five-year capital plan along with a $698 million operating budget for fiscal 2011.