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Save the Date!
Ehlers Wisconsin Public Finance Seminar
Even though we're six months away from the annual Ehlers Wisconsin Public Finance Seminar, we want to make sure you plan on attending February 14-15, 2013.
More details will follow in the months ahead.
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MSRB Education Materials
The Municipal Securities Rulemaking Board has made educational materials available on the upcoming changes to MSRB Rule G-17. This rule states in the conduct of its municipal securities or municipal advisory activities, each broker, dealer, municipal securities dealer, and municipal advisor shall deal fairly with all persons and shall not engage in any deceptive, dishonest, or unfair practice. The new requirements for underwriters, which are effective August 2, 2012, are outlined in an interpretive notice on MSRB Rule G-17.
The requirements include explicit and expanded requirements for underwriters aimed at protecting state and local governments that issue municipal bonds. The new rules create affirmative obligations for underwriters to ensure that municipal bond issuers have the information they need to make informed decisions. Examples of subjects addressed in MSRB Rule G-17 include a basic fair dealing principle, role of the underwriter/conflicts of interest, disclosures concerning the underwriter's role, disclosure concerning the underwriter's compensation, timing and manner of disclosures, and acknowledgement of disclosures.
Click on this link to view the access the educational materials on MSRB Rule G-17.
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Ehlers
375 Bishops Way
Suite 225
Brookfield, WI 53005
Phone: 262-785-1520
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Greetings!
In this issue of The Advisor, we're letting you know that the Wisconsin Department of Revenue (DOR) has released preliminary equalized values, tax incremental district values, and net new construction figures. This year is the first time the DOR is allowing an administrative comment period to review values prior to final certification on August 15th. We encourage all communities to take advantage of the comment period.
Also, a number of Ehlers clients have received a Municipal Derivative Antitrust Litigation notification. We take a brief look at what that means to you.
By way of informational resources for you, the Municipal Securities Rulemaking Board has released educational materials on the upcoming Rule G-17, and we share highlights from The Bond Buyer including the recent national Government Finance Officers Association conference held in Chicago.
And Don't forget to mark your calendars and join us February 14-15, 2013 for the annual Ehlers Wisconsin Public Finance Seminar.
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New Administrative Comment Period for Equalized Values
 The Wisconsin Department of Revenue (DOR) annually releases equalized valuations on August 15 th. This year is the first time the DOR is allowing an administrative comment period to review equalized values prior to final certification on August 15 th. We encourage all communities to take advantage of the comment period to review equalized values for any errors.
Click here to continue reading.
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Municipal Derivatives Antitrust Litigation
by Todd Taves, Financial Advisor
A number of Ehlers clients have received a notification that has been released in the Municipal Derivatives Antitrust Litigation, which concerns the sale of municipal derivative transactions in the United States from January 1, 1992 through August 18, 2011.
Municipal derivatives are financial products used by issuers of tax-exempt municipal bonds (such as states, cities, counties, or their agencies), or by tax-exempt, non-profit private entities, to invest the money received from bond offerings while they are waiting to spend it. Municipal derivatives come in many varieties. Some of the more common types are:
- Guaranteed investment contracts
- Interest-rate swaps
- Options
- "Swaptions"(a combination of a swap and an option)
- Interest-rate floors
- Collars
The focus of the lawsuit relates to bid-rigging in the sale of municipal derivatives by several companies including Morgan Stanley, JP Morgan Chase & Co., Wachovia Bank, N.A. (Wells Fargo Bank, N.A.) and others. Notices of this nature are often sent to any person or entity that may have been a party to the transaction(s) mentioned. If you received this notice, it is possible that you, or an agent on your behalf, may have temporarily reinvested bond proceeds in a municipal derivatives product with one or more of these financial institutions. A partial settlement of the class action has been reached with Morgan Stanley. There are proposed settlements regarding the sale of municipal derivatives by JP Morgan and Wells Fargo Bank N.A./Wachovia Bank, N.A.
The lawsuit continues against the other Defendants, so please check the Municipal Derivatives Settlement website link below and look for further information in the mail to help you decide whether or not to participate in any claims or settlements relating to the named Defendants
As always, please contact an Ehlers Advisor with any questions.
Click here to read more about the litigation and settlements.
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Highlights from GFOA National Conference and The Bond Buyer
Wisconsin was well represented at the National GFOA Conference in Chicago in June, and we enjoyed seeing you at our booth and at the receptions. There were several topical items discussed at the Conference that were written about in GFOA Today, published by The Bond Buyer. Here are some highlights of newsworthy articles.
Click here to continue reading.
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