Bankruptcy

BRADENTON, Fla. - Alabama Magistrate-Judge John E. Ott has recommended postponing Monday's federal receivership hearing of the Jefferson County sewer system until Feb. 25.

A group of international finance experts led by former Federal Reserve chairman Paul Volcker is calling for regulation of over-the-counter derivatives, improvements in credit ratings, and a reevaluation of fair-value accounting among its recommendations for financial regulatory reform.

SAN FRANCISCO - When California Attorney General Jerry Brown said "cash-out refunding bonds" violated the state's constitution, he gave bond lawyers and school officials a degree of clarity on a controversial aspect of the law.

Mary Schapiro, president-elect Barack Obama's choice to lead the Securities and Exchange Commission, told members of the Senate Banking Committee yesterday that she would "reinvigorate" the SEC's enforcement division and ensure the commission adopts a "laser-like focus" on uncovering fraud and protecting investors.

DALLAS - A civil lawsuit claiming that two New Mexico pension funds lost $90 million by investing in toxic assets is the first to assert pay-to-play allegations against Gov. Bill Richardson's administration.

BRADENTON, Fla. - Jefferson County, Ala., commissioners yesterday approved new forbearance agreements on nearly $120 million of non-sewer general obligation warrants.

WASHINGTON - House Financial Services Committee chairman Barney Frank and Rep. Gerald Connolly, D-Va., yesterday called for Congress to consider legislation that would require the federal government to provide direct credit enhancement or a guarantee for municipal bonds.

DALLAS - One of the Southwest's most prominent political consultants and a member of the Arizona Board of Regents pitched business for underwriter UBS AG while also heading one of New Mexico Gov. Bill Richardson's fundraising committees.

CHICAGO - Investors who hold $98 million of St. Louis convention center hotel bonds took the first step this week toward foreclosing on the property following the obligated group's default on its December debt service payment.

BRADENTON, Fla. - Jefferson County, Ala., commissioners today hold a special meeting to consider forbearance agreement extensions on nearly $120 million of non-sewer general obligation warrants.

WASHINGTON - President Bush agreed yesterday, at the request of President-elect Barack Obama, to formally ask Congress for the second $350 billion tranche of the Troubled Assets Relief Program, a move that is expected to lead to long-sought, direct federal help for state and local governments.

CHICAGO - Facing a historic Senate impeachment trial, a defiant Illinois Gov. Rod Blagojevich on Friday vowed to remain in office as he blamed the House's near unanimous vote earlier in the day to impeach him on an ongoing legislative power struggle.

WASHINGTON - President-elect Barack Obama's transition team is working closely with House Financial Services chairman Barney Frank and other lawmakers to make sure that municipal debt is included in the federal government's economic recovery programs.

SAN FRANCISCO - Is your state about to go bankrupt?

WASHINGTON - The Municipal Securities Rulemaking Board strongly urged President-elect Barack Obama, his advisers, and the new Congress Friday to consider federally regulating brokers of guaranteed investment contracts and financial advisers in the municipal market that are not currently subject to regulation.

DALLAS - Orleans Parish district attorney Leon Cannizzaro Jr. has temporarily withdrawn a petition for bankruptcy filed with the Louisiana State Bond Commission over a $15 million federal court judgment against his office for withholding evidence.

BRADENTON, Fla. - Jefferson County, Ala., officials last week disclosed that they were notified once again about a default for covenant violations on some or all of their $3.2 billion of outstanding sewer warrants, most of which remain in troubled variable- or auction-rate mode.

WASHINGTON - House Financial Services Committee chairman Barney Frank is expected to introduce legislation today that will give the Treasury Department and the Federal Reserve explicit authority to purchase or guarantee municipal debt under their economic recovery programs, congressional sources briefed on the legislation said.

CHICAGO — The Illinois House is expected to debate and vote today on the impeachment of Gov. Rod Blagojevich following a special investigative committee’s recommendation that his arrest on federal corruption charges and other alleged abuses of power warrant his removal.

WASHINGTON - The Federal Reserve yesterday offered to provide a backstop for state and local government investment pools by making them eligible for its Money Market Investor Funding Facility, marking the first time during the financial crisis that the federal government has shown a willingness to provide direct assistance to municipal issuers.