The Securities and Exchange Commission (SEC) has charged a municipality for allegedly making misleading financial statements outside of the usual securities filings.
The SEC faulted Harrisburg, Pennsylvania, the state’s capital, for misleading statements in the city’s budget report and the mayor’s state-of-the-city address during the 2009-2011 period. At the time, Harrisburg was teetering on the brink of bankruptcy, and it remains in financial straits today, with a state-appointed receiver overseeing its finances.
Earlier this year the SEC charged Illinois for allegedly releasing misleading information about the state’s pension fund and several years ago it filed similar charges against New Jersey.
“The SEC is becoming more activist in the realm of the municipal bond market which is a huge market,” says The Daily Ticker’s Aaron Task. “I wonder if this is a threat to the muni bond market.”Read More »from SEC Charges Against Harrisburg ‘Good News’ for Muni Market: Matt Fabian