Washington

Two Republican state committees that challenged the constitutionality of a Securities and Exchange Commission political contributions rule are insisting the SEC reject a Municipal Securities Rulemaking Board proposal to extend pay-to-play prohibitions to municipal advisors.

Dealer and advisor groups want revisions to a Municipal Securities Rulemaking Board proposal to extend pay-to-play prohibitions to non-dealer municipal advisors.

The Internal Revenue Service appears is stepping up its audit of $80 million of Arborwood Community Development District's 2006 bonds and appears to be focusing in part on the Florida CDD's board and land that may have been purchased at too high of a price.

The Municipal Securities Rulemaking Board plans to discuss bank loans and dealer disclosure of markups to retail customers during its board meeting here next week.

The Municipal Securities Rulemaking Board announced on Tuesday which registered brokers, dealers, and municipal advisors will be required to participate in testing business continuity and disaster recovery plans.

The Municipal Securities Rulemaking Board is asking the Securities and Exchange Commission to approve its slightly revised proposal to lengthen board members’ terms to four years from three.

J. P. Turner & Co. and Wedbush Securities, Inc. were hit with a total of $305,000 in fines by the Financial Industry Regulatory Authority for violating municipal bond rules in connection with excessive markups, disclosure failures, and/or falsifying documents.

The “Great Financial Crisis” continues to haunt the world’s economy because government failed to repair a damaged system and prosecute fraud, says University of Texas economist James K. Galbraith, who speaks next month at a Bond Buyer event in Austin.

The Securities and Exchange Commission has charged State Street Bank and Trust Co., the former head of its public funds group, and a lawyer-lobbyist with securities fraud for making illicit payments and campaign contributions to obtain Ohio pension fund business worth millions.

A Securities and Exchange Commission proposal designed to bolster liquidity risk management among open-end funds would likely reduce the funds' appetite for municipal securities and deter infrastructure projects, the Government Finance Officers Association warned.