Bankruptcy

Even with the market closed for Veteran's Day, the Jefferson County, Ala., bankruptcy filing still weighed on the minds of muni market participants as they examined its effects on the broader market.

Alabama issuers should not see their ratings lowered by the Jefferson County bankruptcy action, but investor perception could take its toll on future issues.

California's redevelopment agencies may be closer to death's door than previously thought after a state Supreme Court hearing on Thursday.

The Municipal Securities Rulemaking Board has referred unregistered municipal advisors to the Securities and Exchange Commission for investigation and possible enforcement action, the board said Thursday.

The Financial Industry Regulatory Authority has fined Morgan Stanley $1 million and ordered it to pay $371,476 in restitution to customers for excessive markups and markdowns on municipal and corporate bonds.

The bond insurer for Harrisburg, Pa.'s troubled incinerator renovation project has rejected a request from the city to forgive $100 million of debt.

Retail reaction to the announcement late Wednesday that Jefferson County, Ala., filed the largest municipal bankruptcy in U.S. history is likely to be muted, yet will still be closely monitored, portfolio managers say.

Voters in Vallejo, which recently exited bankruptcy, appeared set to defeat a 1% sales tax hike measure after Tuesday's election.

Retail reaction to the announcement late Wednesday that Jefferson County, Ala., filed the largest municipal bankruptcy in U.S. history is likely to be muted, yet will still be closely monitored, portfolio managers say.

CHICAGO - Michigan Gov. Rick Snyder has declared that Flint is in a state of financial emergency, setting up the long-struggling city for a state takeover.

BRADENTON, Fla. - Jefferson County, Ala., commissioners Wednesday voted to file the largest municipal bankruptcy in U.S. history, saying they could not come to terms with creditors over restructuring $3.14 billion of defaulted sewer debt.

SAN FRANCISCO - California redevelopment agency advocates and critics are on tenterhooks this week as the state Supreme Court is set to hear a case that will determine their future.

BRADENTON, Fla. - Jefferson County, Ala., commissioners met Tuesday behind closed doors with attorneys discussing whether to finalize a pending settlement with creditors or to file bankruptcy.

WASHINGTON - Wachovia Bank NA, now Wells Fargo & Co., has reached a tentative settlement of a consolidated class- action suit with municipal issuers over antitrust charges of bid-rigging for municipal investment, derivatives and other contracts.

SAN FRANCISCO - The San Diego Unified School District's board, after warning in October that the district could face insolvency and after being downgraded last week, is now talking about placing a $1.5 billion to $2 billion bond issue on the ballot in November 2012.

The attorney representing the Harrisburg, Pa., City Council in its bankruptcy filing said his endgame is to pay bondholders in full.

A judge last week approved a restructuring plan for the troubled Detroit Water and Sewerage Department that allows the city to maintain ownership but gives the seven-member board more authority over certain matters, including labor negotiations.

CHICAGO - The trustee for $39 million of appropriation-backed bonds sold by a Moberly, Missouri, to help finance an artificial sweetener factory has filed a federal lawsuit against the Chinese company that abandoned the half-built project and defaulted on its city payments to cover debt service.

Retired police officers and firefighters, and unions representing municipal employees in Central Falls, have filed objections in federal bankruptcy court to Rhode Island-appointed receiver Robert Flanders’ plan to change their pensions and contracts.

Pennsylvania Sen. Jeffrey Piccola, who in the past year has sponsored legislation to put Harrisburg under state control and restrict its bankruptcy options, may no longer have parts of the capital city in his district.