Financial bigwigs call for municipal bond regulation

A task force calls for more transparency on state budgeting levels, beginning with reviewing the Tower Amendment for municipal bonds

The State Budget Crisis Task Force issued its final report on January 14, and part of it was devoted to urging more transparency in state and local levels of financial reporting and budgeting. One of the heralded initiatives -- particularly vocalized by the chairmen of the Task Force -- was the need to review the Tower Amendment and authorize the Securities and Exchange Commission to require proper disclosure from issuers of municipal bonds.

The Tower Amendment -- enacted in 1975 to amend the Securities Exchange Act of 1934 -- disables the SEC from mandating that issuers of municipal bonds file securities documents before selling the bonds. The report from the Task Force states that the Amendment should be "revisited so the SEC can require issuers to comply with sensible disclosure requirements as well as with robust accounting standards."

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Juliana Kenny

Juliana Kenny is a contributor to InsideCounsel.com, covering a range of topics including patent litigation, conflict mineral laws, executive compensation, and antitrust regulation. Juliana earned B.A.s...

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