Bankruptcy

A federal judge has scheduled a hearing for Dec. 8 to consider a motion for relief sought by 50 retirees who are suing the city of Prichard, which filed for municipal bankruptcy in October.

BRADENTON, Fla. — Saying that Jefferson County, Ala.’s sewer debt crisis has gone on too long, a grassroots organization of business leaders is trying raise public support to press local politicians and the county’s creditors for a solution.

WASHINGTON — The Obama administration yesterday announced the formation of a multi-agency task force that will investigate and prosecute “significant” financial crimes and civil violations tied to the financial crisis and the government’s economic recovery programs.

WASHINGTON — State and local housing finance agency officials generally applauded the allocations they received from the Treasury Department for the new-issue bond purchase and temporary credit and liquidity programs, saying they were close to what they requested and should boost ailing housing programs.

The Financial Industry Regulatory Authority censured and fined four firms a total of $175,500 for municipal and other rule violations, including $55,000 against Morgan Stanley for failing to report municipal and corporate securities transactions in a timely manner.

The Municipal Securities Rulemaking Board would have more leeway to select members on a 15-member majority-public board under a revised draft of financial regulatory reform legislation released yesterday by the Senate Banking Committee.

SAN FRANCISCO — The Sacramento Municipal Utility District has joined the ranks of public agencies filing civil lawsuits alleging a bid-rigging conspiracy in the municipal derivatives market.

BRADENTON, Fla. — Jefferson County, Ala. on Friday filed a lawsuit against JPMorgan, Blount Parrish & Co., Charles LeCroy, Douglas MacFaddin, Larry Langford, William Blount, and Albert LaPierre for their roles in the county’s $3.2 billion of troubled sewer refinancings and swaps

WASHINGTON — The Securities and Exchange Commission will likely vote to adopt final changes to its Rule 15c2-12 on disclosure “very early” next year and will then meet with lawmakers to see what can be done to expand its authority over the muni market, SEC chairman Mary Schapiro said this week.

WASHINGTON — The Securities and Exchange Commission’s settlement last week with JPMorgan over payments former bankers made to get municipal bond and swap business from Jefferson County, Ala., as well as other recent enforcement actions, show the SEC is not afraid to pursue complex and difficult financial crimes, the agency’s head of enforcement said yesterday.

BRADENTON, Fla. — Former Jefferson County, Ala., commissioner Mary Buckelew will serve no prison time for lying to a grand jury about expensive gifts and spa treatments she received to influence her vote in connection with $3.2 billion of debt and swaps sold for the county’s sewer system.

A bankruptcy judge in Santa Rosa gave final approval Friday to a liquidation plan for the assets of Copia, the failed tax-exempt bond financed nonprofit wine museum in the city of Napa.

WASHINGTON — Senate Banking Committee chairman Christopher Dodd yesterday unveiled a massive draft regulatory reform bill that envisions a more independent and powerful Municipal Securities Rulemaking Board.

David Rubin, founder of CDR Financial Products Inc., and two colleagues on Friday pleaded not guilty to criminal antitrust, wire fraud and other charges stemming from an alleged conspiracy to rig bids for municipal investment agreements and derivatives contracts for kickbacks.

WASHINGTON — The Municipal Securities Rulemaking Board yesterday filed a new rule with the Securities and Exchange Commission that would allow it to collect a flat $60 “development fee” on examinations taken by municipal securities representatives and principals, as well as muni fund securities “limited principals,” to demonstrate competence in their areas of work.

BRADENTON, Fla. — Former Birmingham, Ala., Mayor Larry Langford has filed a motion for new trial on pay-to-play charges and requested that the judge set aside his conviction because, among other reasons, the jury didn’t deliberate long enough.

Voters in bankrupt Vallejo reauthorized the city’s utility user tax, saving $5.2 million of revenue for the city’s $75 million general fund.

WASHINGTON — The Securities and Exchange Commission announced yesterday that it has settled securities fraud and other charges against JPMorgan Securities Inc. and is pursuing charges against two of the firm’s former managing directors, Charles LeCroy and Douglas MacFaddin, in connection with muni bond and swap transactions done with Jefferson County, Ala.

The House Financial Services Committee yesterday voted 41 to 28 to approve a bill that would require financial advisers in the municipal market to register with the Securities and Exchange Commission and direct the Municipal Securities Rulemaking Board to have a majority of public members.

WASHINGTON — Two prominent industry groups are raising strong objections to draft changes the Municipal Securities Rulemaking Board proposed for its Rule G-37 on political contributions that would require dealer-affiliated banks and bank holding company political action committees to disclose the contributions they make to issuer officials.