Lisa's Feed
Jun 25, 2013

U.S. Treasury stands behind cap on municipal bond exemption

WASHINGTON, June 25 (Reuters) – President Barack Obama’s
administration is still pursuing his proposal to limit the tax
exemption for interest paid by municipal bonds, with a top U.S.
Treasury official on Tuesday saying the agency hopes new debt
programs will allow state and local governments to continue
financing public works.

As part of his push to balance the federal budget, Obama has
repeatedly suggested limiting the rate at which high-income
taxpayers can reduce their liability at 28 percent.

Jun 21, 2013

Maryland, Virginia, D.C. escaped govt spending cuts

WASHINGTON, June 21 (Reuters) – Automatic federal spending
cuts known as sequestration have not spawned unemployment in
Virginia, Maryland and Washington, D.C., as many predicted, with
data released on Friday showing that the three places gained
jobs as their unemployment rates dropped over the last year.

According to the Labor Department, Virginia’s unemployment
rate was 5.3 percent in May, compared to 5.9 in May 2012. The
drop was also seen for the District of Columbia, where the rate
was 8.5 percent in May, compared to 9.1 percent the year before.
For Maryland, the rate was 6.7 percent, down slightly down from
6.8 percent in May 2012.

Jun 20, 2013

Talk of interest rate rise rocks U.S. municipal bond market

By Lisa Lambert

(Reuters) – The possibility of rising interest rates rocked the U.S. municipal bond market on Thursday, with prices plunging in secondary trade, investors selling off the debt, money pouring out of mutual funds and issuers postponing nearly $2 billion in new sales.

“The market got crushed,” said Daniel Berger, an analyst at Municipal Market Data, a unit of Thomson Reuters, about the widespread sell-off.

Jun 13, 2013

Despite budget rebound, U.S. states see fiscal threats

WASHINGTON (Reuters) – Most U.S. states are set to end the current fiscal year in solid financial shape, but their recoveries could be derailed by an array of threats and increasing demands on their spending, according to a survey released on Thursday.

Bringing welcome relief after years of budget shortfalls, states’ revenues have risen steadily over the last year. Many states are set to finish fiscal 2013 “with modest surpluses,” according to a twice-yearly survey of state budgets by the National Governors Association and the National Association of State Budget Officers.

Jun 13, 2013

Budgets rebound but states to limit spending increases

WASHINGTON (Reuters) – Most U.S. states are set to end this fiscal year in solid financial shape, but a report on Thursday said an array of threats including federal budget cuts and potential sales tax declines will keep state spending.

The survey of states’ fiscal conditions conducted by the National Governors Association and the National Association of State Budget Officers found that revenues have come in stronger than expected this fiscal year, and “a number of states could finish fiscal 2013 with modest surpluses.”

Jun 10, 2013

Detroit adviser to return $3 million to pension fund -SEC

WASHINGTON, June 10 (Reuters) – A Detroit-based investment
adviser agreed to give back $3.1 million that U.S. regulators
allege he stole from a pension fund for the city’s police and
firefighters, the U.S. Securities and Exchange Commission said
on Monday.

Chauncey Mayfield, who is the head of MayfieldGentry Realty
Advisors, took the money so he could buy two strip malls in
California, the SEC said.

Jun 6, 2013

Bank holdings of U.S. municipal bonds hit record high

WASHINGTON, June 6 (Reuters) – The banking sector is
becoming a greater force in the U.S. municipal bond market, with
Federal Reserve data on Thursday showing that banks’ holdings of
municipal bonds reached a record $374.2 billion in the first
quarter of 2013.

The sector now holds more than 10 percent of outstanding
municipal bonds, nearly double its 5.9 percent market share in
2007, according to the Federal Reserve report.

May 23, 2013

Former Goldman banker settles SEC ‘pay-to-play’ charges

WASHINGTON/CHICAGO (Reuters) – A former Goldman Sachs Group Inc. investment banker has agreed to a five-year securities industry ban and a record fine to settle Securities and Exchange Commission charges that he broke rules against influence peddling to win bond underwriting business in Massachusetts.

Without admitting or denying wrongdoing, Neil Morrison, 38, accepted what the SEC said was the first industry ban for violating “pay-to-play” rules governing the $3.7 trillion municipal bond market.

May 16, 2013

April income tax collections climb in many states, but may be a blip

By Karen Pierog and Lisa Lambert

(Reuters) – Personal income tax collections rose by 37 percent in April from a year ago, according to a sample of states, but the improvements may not continue as a still-shaky economy, tax cuts in some states and federal budget woes could team up to depress revenue growth.

Excluding California, which had the biggest gain of the 21 states that have so far reported collections in April, the total increase was still a solid 22 percent.

May 7, 2013

Moody’s: Municipal defaults up since crisis, but still low

WASHINGTON, May 7 (Reuters) – Moody’s Investors Service said
on Tuesday that the number of defaults among the U.S. municipal
bonds it rates has risen since the financial crisis but still
remains low.

The economy has been recovering but many local governments
are buckling under a combination of stresses on their budgets,
with places such as Stockton, California, in bankruptcy.