SEC, IRS to crack down on muni bond shenanigans

APR 01, 2010
The Securities and Exchange Commission and the Internal Revenue Service have agreed to work more closely together to regulate the massive municipal bond market, the two agencies announced Tuesday. The heads of the SEC and the IRS signed a document called a memorandum of understanding aimed at improving compliance with the agencies' rules related to municipal securities, especially tax-exempt bonds. The agencies also agreed to share information on practices and risks in the "muni" securities market. State and local governments raise funds for schools, roads and hospitals by issuing bonds, in a market estimated to be worth about $2.8 trillion. Retail investors increasingly participate in the market, seeking safe investments with reliable returns. Crises in several municipalities have underscored the importance of the muni market. In Jefferson County, Ala., a $3.9 billion debt debacle brought the state's most populous county to the brink of filing what would be the largest municipal bankruptcy in U.S. history. The debt ballooned in March 2009 when JPMorgan Chase & Co. canceled interest-rate swap contracts with the county worth around $700 million. Last July, the SEC proposed tightening rules governing disclosures about municipal securities to aid investors.

Latest News

The fight over the CFPB is just beginning
The fight over the CFPB is just beginning

Locked out of their offices and told to stay home, employees at the Consumer Financial Protection Bureau have asked the courts to intervene as Elon Musk and Republican leaders move to shut down the agency that was established to protect people from predatory lending and financial scams.

Business-focused wealth tech RISR lands $8B Wealthcare Capital Management partnership
Business-focused wealth tech RISR lands $8B Wealthcare Capital Management partnership

Fintech platform interVal has also introduced a new feature to help advisors support entrepreneurial business owner clients better.

LPL boosts revenue potential with amped-up alts platform
LPL boosts revenue potential with amped-up alts platform

Along with greater revenue, alternative investments also carry risks, one industry lawyer noted.

How SageSpring Wealth Partners' next-gen strategy has fueled its success
How SageSpring Wealth Partners' next-gen strategy has fueled its success

President Jeff Dobyns unpacks the strategic power of mentorship, what makes an "ideal team player," and how the firm's 89 percent success rate has paid off for veteran advisors.

Powell heads for hot-seat hearings with ongoing pressure from Trump policies
Powell heads for hot-seat hearings with ongoing pressure from Trump policies

The Fed chair is in for some "hyper-charged" meetings, with legislators likely to raise questions on tariff threats and apparent steps to comply with anti-DEI orders.

SPONSORED Taylor Matthews on what's behind Farther's rapid growth

From 'no clients' to reshaping wealth management, Farther blends tech and trust to deliver family-office experience at scale.

SPONSORED Why wealth advisors should care about the future of federal tax policy

Blue Vault features expert strategies to harness for maximum client advantage.