Washington

A group of Senate Democrats is urging the U.S. Department of Justice and federal banking and securities regulators to investigate allegations that domestic and foreign banks manipulated the London Interbank Offered Rate, or Libor, which is used as a benchmark in municipal bond-related swaps and other financial products.

Municipal market participants are praising rules finalized by the Commodity Futures Trading Commission that except most state and local governments from having to clear interest rate swaps through a derivatives clearing organization.

Lawyers for former UBS Financial Services Inc. bankers Peter Ghavami, Gary Heinz and Michael Welty requested permission from the court to present evidence on municipal bond transactions other than 38 specific deals highlighted by prosecutors.

Senate and House committees are looking into allegations that banks manipulated Libor, the London Interbank Offered Rate that is used by financial institutions to set interest rates for financial products, including interest rate swaps used by municipal bond issuers to hedge variable rate debt.

Lawmakers and financial market participants sparred over the economic and business impact of the Dodd-Frank Bill and the so-called Volcker Rule, as well as fallout from potential new money market rules.

The Senate Banking Committee is looking into the allegations that banks manipulated Libor, the London Interbank Offered Rate that is used by financial institutions to set interest rates for financial products, including interest rate swaps entered into by municipal bond issuers.

An independent investment banker from Arizona is seeking a U.S. patent for a new tax credit structure being modeled as an alternative to traditional bond insurance.

A House Financial Services subcommittee will hold a hearing July 20 to discuss a bill that would eliminate the fiduciary duty imposed on municipal advisors by the Dodd-Frank Act and limit the kinds of firms that would be regulated as municipal advisors.

Bond Dealers of America released a guide Thursday designed to help the group's members comply with recently-approved guidance from the Municipal Securities Rulemaking Board regarding what underwriters must disclose to muni bond issuers.