Fixed income

State and local governments will save $12.3 billion on the $90 billion of Build America Bonds issued so far compared with traditional tax-exempt debt, the Treasury Department said in a recent report touting the success of the program.

WASHINGTON — A federal judge in Manhattan has refused to dismiss class action claims filed by local governments alleging that Wells Fargo & Co. and 15 other banks, broker-dealers and investment brokers conspired to rig bids and fix prices of guaranteed investment and derivatives contracts in the municipal market.

Ambac postponed the release of its 4Q and year-end earnings last week due to ongoing discussions with counterparties

Timing of Senate Action Is Unclear

Market Players Push for Changes

SIFMA and CMSA back Garrett's follow-up bill

Charles Schwab Corp. has partnered with Pacific Investment Management Co. to offer wealthy clients in or approaching retirement a managed municipal bond laddering product.

But the direct-pay subsidy rate would shrink from the current 35% of interest costs to 33% in 2011, 31% in 2012 and 30% in 2013, under a draft of a second jobs bill unveiled yesterday by House Ways and Means Committee chairman Sander Levin, D-Mich.

The top Republican tax-writer in the Senate yesterday warned colleagues that provisions in the House-passed jobs bill that offer high subsidy rates for Build America Bond-type programs would allow Wall Street banks to pocket more in underwriting fees.

Do Buyers Prefer Passive or Active?

The Municipal Securities Rulemaking Board is expected to file long-awaited rule changes with the Securities and Exchange Commission that would implement the final phase of its transparency system for auction-rate securities and variable-rate demand obligations.

Muni Provisions Could Cost $20 billion

But the Regions wealth management unit refuses to roll over.

House Counsel: 28% Rate Unlikely

Investors showed uncanny calm, inertia or perhaps even malaise during the recession, with a scant 1% selling out of equity funds at the height of the market volatility in October 2008, Vanguard found.

Says Banks Will 'Skim the Cream’

But, even a few bankruptcies can set a bad precedent.

Despite ongoing litigation, less than stellar ratings and continued losses on structured finance products, MBIA Inc. managed to post positive net income last year.

Wyden, Gregg ­Address Munis

"Almost Hard to Fathom," Mier Said.