Law and legal issues

WASHINGTON - Senate Banking Committee members Charles Schumer, D-N.Y., and Richard Shelby, R-Ala., introduced legislation yesterday that would provide an additional $110 million for federal law enforcement agencies to boost the number of investigators and prosecutors of white-collar crimes that have contributed to the ongoing financial crisis.

WASHINGTON - The House yesterday voted 260-166 to pass legislation that would establish new conditions for the disbursement of the second $350 billion portion of the Troubled Assets Relief Program, including a provision clarifying that the Treasury Department has the authority to help the municipal bond market.

Christopher Cox stepped down as the chairman of the Securities and Exchange Commission Tuesday, after having been criticized for acting too slowly on the financial crisis and failing to protect investors.

CHICAGO - Former Bear, Stearns & Co. public finance banker P. Nicholas Hurtgen faces a March trial on federal charges that he participated in an extortion scheme involving a Chicago-area hospital as it sought Illinois regulatory approval to build a new facility.

CHICAGO - An appeals court in Chicago is expected to rule within the next 60 days on Indiana-based Hoosier Energy Electric Cooperative Inc.'s efforts to stall a demand for a $120 million termination payment on a lease transaction triggered by the downgrade of the transaction's insurer.

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.