Commentaries
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Are IOUs securities?
That’s the question lots of folks are asking as they try to figure out how to potentially make money from the billions of dollars in IOUs being sent out by California this month.
If the Securities and Exchange Commission says yes, then two other regulators will be pulled in: the Municipal Securities Rulemaking Board, or MSRB, which would monitor the situation to make sure everyone is playing by the rules, and the Financial Industry Regulatory Authority, or FINRA, which would knock heads if there’s any wrongdoing.
It would also mean that only certified financial professionals could act as the intermediary between buyers and sellers.
If the budget crisis drags on, I imagine the professionals will be clamoring for the SEC to say yes to securities.
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The Wall
