Law and legal issues

The Obama administration and Senate Democrats yesterday urged senators to come to an agreement on broad financial regulatory reform this week, while the most moderate Republican on the issue argued that negotiations should go on for at least another three or four weeks before a bill is considered on the Senate floor.

WASHINGTON — Swap dealers that pitch to, advise, or enter into swap agreements with states, localities, and public pension funds would have a “fiduciary duty” to put the interests of those entities first, under legislation released Friday afternoon by Senate Agriculture Committee chairman Blanche Lincoln.

WASHINGTON — The Securities and Exchange Commission and the New York attorney general reached settlement agreements with investment adviser Quadrangle Group LLC and others for allegedly engaging in pay-to-play practices with state officials and their consultants to obtain investment business from New York’s pension fund.

WASHINGTON — The Financial Industry Regulatory Authority has fined three firms a total of $62,500 for municipal and other rule violations, including $32,500 from Lexington Investment Co. for failing to accurately report muni and corporate securities transactions.

WASHINGTON — Sen. Charles Schumer joined current and former chairmen of the Securities and Exchange Commission yesterday to urge lawmakers to keep a self-funding provision for the SEC in financial regulatory reform legislation that is inching its way to a vote in the Senate.

New York Attorney General Andrew Cuomo Thursday recouped nearly $12 million for the Empire State from four firms and one individual connected to illegal investment actions of the state’s pension fund.

The California Senate plans to hold hearings Wednesday on a bill that would limit municipal bankruptcies in the state.

California redevelopment agencies expect a court to rule on the constitutionality of a $2.05 billion state raid on redevelopment revenue before a looming deadline for first payments by the agencies.

Gov. Sonny Perdue Tuesday announced that he appointed a special attorney general, who will work for free, to direct Georgia’s participation in challenging the federal health care legislation recently passed by Congress.

Alabama state senators Tuesday passed a bill that originated in the House placing strict requirements on Jefferson County’s issuance of debt and use of swaps. The measure is now on its way to Gov. Bob Riley.

WASHINGTON — At least six state securities regulators are considering enforcement action against banks and broker-dealers that have failed to commit their “best efforts” to restore liquidity to institutional investors in auction-rate securities, according to David Massey, North Carolina’s deputy securities ­administrator.

A circuit court judge in northwest Indiana ruled this week that Porter County could not withdraw from a local regional development authority.

Five of the six complaints bond insurer MBIA Insurance Corp. filed in April 2009 against Merrill Lynch were dismissed by the New York Supreme Court late Friday.

The Financial Industry Regulatory Authority fined D.A. Davidson & Co. $375,000 for failing to protect confidential customer information that hackers stole from its computer systems in late 2007, but credited the firm for its response to customers after it learned of the breach and for cooperating with criminal law enforcement agencies.

A U.S. district court judge last week dismissed a lawsuit against the Metropolitan Washington Airports Authority that contested its right to collect toll revenues that secure more than $900 million of MWAA's outstanding bonds. The bond proceeds are helping to finance the system's expansion of rail service to Washington Dulles International Airport.

Los Angeles city administrative officer Miguel Santana, who was leading efforts to close the city's $212 million budget deficit, took a leave of absence last week after being arrested for alleged drunk driving.

WASHINGTON — The National Association of Bond Lawyers is urging federal regulators to put a notice on EMMA alerting investors that rating information in offering and continuing disclosure documents may not be accurate as credit rating agencies recalibrate the ratings for tens of thousands of municipal bonds.

Bank of America Merrill Lynch will pay New Jersey $4.87 million and repurchase auction-rate securities sold to investors in a settlement agreement over alleged misinformation regarding the floating-rate securities.

BRADENTON, Fla. — The Florida Supreme Court is scheduled to hear oral arguments today in the long quest by South Florida water managers to validate $650 million of certificates of ­participation.

A lawsuit charging Syncora Holdings Ltd. with fraudulent misrepresentation was dismissed by the U.S. District Court of the Southern District of New York ­Wednesday.