HR 2827 & S 3620 – Municipalities & Taxpayers Beware!

Download or view AFR’s analysis of HR 2827 and S 3620.

The Dodd-Frank Act sought to protect municipalities and taxpayers against exploitative Wall Street financing deals. Now there are moves afoot to take back some of that promised protection.

In September the House passed a bill, HR 2827, that would greatly weaken rules for municipal advisors, by exempting many people who play that role. The measure has now been introduced in the Senate as S 3620. Its practical effect would be to exempt those working for banks or swap dealers in any dealings that involve an underwriting, a swaps deal, or the sale of a financial product.Even people giving financial advice to municipality would be relieved from any fiduciary duty to respect the taxpayers’ interests.