Boost muni market oversight, says Cox

Securities and Exchange Commission Christopher Cox will call for Congress to mandate more oversight of the $2.4 trillion municipal-bond market, according to published reports. Additionally, Mr. Cox will direct the SEC's examination staff will begin a review of brokerage firms to ensure that they are complying with rules that prohibit them from doing business with any municipality that also receives political donations from the brokerage firm, a practice known as pay-to-play, his spokesman said, according to The Wall Street Journal. Mr. Cox's proposals are intended to reduce the likelihood of financial problems like the ones in San Diego and Orange County, Calif., in recent years, according to The New York Times. He will argue that a ''limited regulatory regime'' is needed, SEC spokesman John Nester, said last night.