Bankruptcy

U.S. mayors descended on Washington this week to combat the budget cuts approved by the House last week that would threaten certain federal programs for local governments, especially the community development block grant program.

WASHINGTON — In an effort to prevent a recurrence of past abuses by broker's brokers, the Municipal Securities Rulemaking Board has issued a new draft rule that details what they must do to comply with pricing, fair-dealing, and transaction rules.

The financially ailing Jackson Health System in South Florida could become the latest public nonprofit entity to be taken private despite an ongoing Securities and Exchange Commission inquiry believed to be related to bond disclosure issues.

A statewide grand jury on public corruption said the "squandering of hundreds of millions of taxpayer dollars for a mediocre product" saddled the Broward County School District with debt while leaving some areas of the county with overcrowded schools and others with vacancies.

WASHINGTON — State, local, nonprofit and other groups are flooding the Securities and Exchange Commission with complaints that its definition of muni adviser in proposed registration rules is overly broad and would disrupt their bond financings and other activities.

SAN FRANCISCO — A Superior Court judge in California has denied a lawsuit brought by a public employees' union that sought to block a plan for a public-private partnership to rebuild a road linking San Francisco and the Golden Gate Bridge.

WASHINGTON — The Municipal Securities Rulemaking Board issued draft amendments to its Rule G-20 on Tuesday that generally would bar muni advisers from giving gifts and gratuities in excess of $100 per year to individuals or entities who could influence the award of advisory business.

A hearing has been pushed back a week to March 1 on Chicago's motion asking a Cook County Circuit Court judge to dismiss a suit challenging the city's authority to proceed with $3.36 billion worth of expansion projects at O'Hare International Airport without airline approval.

CHICAGO — Menasha would pay holders of $23 million of defaulted steam-plant bond anticipation notes $17.5 million under a proposed cash settlement that would end bondholder litigation and put the Wisconsin city on a path towards rebuilding its credit.

The chances that Ambac Assurance Corp. will be able to keep $700 million of disputed tax refunds increased last week when a federal court in Wisconsin again threw out the Internal Revenue Service’s case against the bond insurer.

A New York State judge on Friday temporarily blocked a key provision of a control board’s takeover of Nassau County’s finances.

The municipal bond insurance industry would still be thriving today if big banks hadn’t defrauded the insurers.

SAN FRANCISCO — Southern California’s Borrego Water District has defaulted on $9.5 million of special-tax bonds owned by Nuveen Asset Management.

Senate Banking Committee Republicans worry Securities and Exchange Commission chairman Mary Schapiro and other regulators are rushing to implement rules mandated by the Dodd-Frank Act without sufficient regard to cost-benefit analyses or public comments.

The Financial Industry Regulatory Authority censured and fined Wells Fargo Advisors LLC $12,500 for failing to provide customers and the Municipal Securities Rulemaking Board with correct yield information from muni securities transactions.

WASHINGTON — Just one day after the Municipal Securities Rulemaking Board issued a draft rule on muni advisers’ fiduciary duties, market participants are questioning the scope of the rule and whether it would apply to brokers engaged in certain activities such as recommending securities in which states and localities could invest general funds.

WASHINGTON — The chairman of the House Judiciary Committee said on Monday that while he remains open to exploring how Congress may play a role in restoring fiscal sanity to state and local government budgets, he does not believe Washington should dictate public pension standards or allow states to seek bankruptcy protection.

An Arizona judge ruled Friday that a ballot proposition approved by voters in 2000 requests, but does not require, that the Legislature adjust its annual allocation formula for state aid to local school districts for inflation.

WASHINGTON — As a House Judiciary Committee panel meets Monday to hold a hearing on public pensions and the need for state bankruptcy protection, pension and muni bond experts are opposing a recently introduced bill that would prohibit them from issuing tax-exempt bonds unless they subject their pension plans to federal oversight and regulation.

Pennsylvania Gov. Tom Corbett last week selected Linda Kelly to succeed him as attorney general.