Reuters: Regulatory News: U.S. muni regulators propose underwriter disclosures

Reuters: Regulatory News Reuters.com is your source for breaking news, business, financial and investing news, including personal finance and stocks. Reuters is the leading global provider of news, financial information and technology solutions to the world's media, financial institutions, businesses and individuals. // via fulltextrssfeed.com

U.S. muni regulators propose underwriter disclosures May 31st 2012, 21:45 Thu May 31, 2012 5:45pm EDT May 31 (Reuters) - Underwriters and municipal advisers selling debt in the $3.7 trillion U.S. municipal bond market may be required to publicly disclose any financial incentives tied to deal making, regulators said on Thu rsday. Pointing to scandals such as the one that helped drive Alabama's Jefferson County into a $4.23 billion bankruptcy, the Municipal Securities Rulemaking Board said it was seeking comment on a proposal to require market professionals to publish deal-related incentives on its EMMMA website. "In the wake of Jefferson County, Alabama, and other situations involving undisclosed financial relationships, concerns have arisen regarding potential conflicts of interest that can impair the ability of municipal market professionals to act fairly and objectively," the MSRB said in a news release. The proposal, if enacted as drafted, would require underwriters and advisers to disclose payments given or received in connection with new issues of tax-free debt, including ones made to attract business. "This comes at a time when the MSRB is focused on our expanded mandate under the Dodd-Frank Wall Street Reform and Consumer Protection Act to protect state and local government issuers," MSRB Executive Director Lynnette Kelly said in a statement. Home to Birmingham, Alabama's biggest city, Jefferson County last November filed the largest U.S. municipal bankruptcy largely because of massive expenses connected to its county sewer system and its soured financing. Dozens of local officials and business leaders were prosecuted on charges related to corruption and JPMorgan Chase in 2009 struck a settlement requiring payments of $720 million over an unlawful payment scheme in Jefferson County's sewer financing. Link this Share this Digg this Email Reprints

You are receiving this email because you subscribed to this feed at blogtrottr.com. If you no longer wish to receive these emails, you can unsubscribe from this feed, or manage all your subscriptions