Law and legal issues

The "Detroit Three" automakers are reportedly considering giving up to $25 million or more in a plan that would raise money for the bankrupt city's pensioners while protecting the city's prized art collection.

Investors that hold roughly $5.3 billion of Detroit revenue bonds as well as $1.4 billion of its pension certificate debt filed objections to the city's plan of debt adjustment, laying out the arguments they will present at a bankruptcy trial two months away.

Michigan lawmakers will spend three days this week debating an 11-bill legislation package outlining the state's role in Detroit's bankruptcy, with emergency manager Kevyn Orr testifying on Tuesday.

Detroit's effort to repay its limited-tax general obligation bondholders only about 10 cents on the dollar would send shock waves through the muni industry and stifle economic growth, SIFMA argued in a court brief filed Monday.

Standard & Poor's put Rhode Island's GO bonds on credit watch negative and threatened a possible multiple-notch downgrade should the state default on 38 Studios debt.

Bond rating agencies could lower Rhode Island to junk if it misses 38 Studios moral obligation payments, said a report commissioned by a state agency.

A recent ruling from the California Supreme Court not to review an decision on other post-employment liabilities is a credit positive for California local governments, though challenges remain, credit rating agencies say.

A Fulton County judge validated $278.3 million in revenue bonds to support the Atlanta Falcon's new stadium though an appeal is expected, an attorney said.

Michigan lawmakers unveiled a package of 11 bills Thursday aimed at hastening Detroit's exit from bankruptcy and managing the city's post-Chapter 9 recovery.

Former CDR Financial Products, Inc. employees Douglas Goldberg and Daniel Naeh were not given any prison time or probation when sentenced on Thursday after pleading guilty in 2010 to multiple criminal charges for participating in wide-reaching bid rigging schemes in the municipal market.

Michigan would create a board to oversee Detroit for up to 20 years and contribute $195 million to the troubled city's pensions in a series of bills expected to be unveiled late Thursday.

The state of Michigan has conditionally approved Wayne County's deficit elimination plan, easing immediate concerns of a state takeover, county officials said Wednesday.

The National Federation of Municipal Analysts presented its annual awards during its conference here on Wednesday, honoring four individuals and an organization for contributions to the municipal bond industry.

In what could be the final chapter in its Chapter 9 proceedings, Stockton will head to court next week to try and convince a U.S. bankruptcy judge that it has a recovery plan that will work.

Puerto Rican investors in municipal bond closed-ended funds run by UBS AG, Banco Popular and Popular Securities sued the firms.

Michigan lawmakers Tuesday created a special committee to deal with Detroit's bankruptcy and recovery ahead of legislation outlining a state contribution that could be unveiled as soon as Thursday.

Rhode Island Secretary of State Ralph Mollis has begun to probe possible violations of lobbying rules involving Curt Schilling's 38 Studios video-game company.

Some of Kansas Gov. Sam Brownback's former aides are under investigation by the FBI for influence peddling related to the state's $3 billion Medicaid program, according to the Topeka Capital-Journal.

A federal judge in Louisiana rescheduled a housing discrimination lawsuit hearing involving the State Bond Commission at the request of State Treasurer John Kennedy.

Bankrupt Detroit Monday filed a new plan to adjust its debt that reflects recent settlement with key creditors, though deals with some bondholders remain elusive.