Washington

A tender offer and a debt service shortfall related to bonds issued in the wake of Winter Storm Uri popped up this month as its financial impact lingers.

FINRA has charged Crews and Associates $50,000 and its former head trader and CEO $30,000 for selling municipal bonds with markups and for failing to maintain a supervisory system.

A downgrade would reverberate throughout the municipal bond market.

The Investment Company Institute reported investors pulled another $137 million out of municipal bond mutual funds in the week ending May 17, after $290 million of outflows the previous week.

New York City is keeping a wary eye on Congress as it considers whether to pause a refunding deal set for next week.

Weakening revenues should be a red flag for states, particularly those planning tax cuts, said Lucy Dadayan of the Urban Institute's Tax Policy Center.

The new law's uncertain impact on cities and states has been a hot topic at the GFOA's annual conference this week.

"If the banking stresses start to bring inflation down for us, then maybe we're getting closer to being done. I just don't know right now," said Federal Reserve Bank of Minneapolis President Neel Kashkari.

When it comes to federal funds flowing to cities and states, top issues to watch are a potential claw back of stimulus aid, fresh infrastructure fund opportunities and guidance on first-of-its-kind tax credits.

The bank-qualified cap is a muni priority that could appeal to lawmakers from less populous areas, as it impacts exclusively small issuers.