According to a recent article in the Washington Post, the “MSRB says it needs more information to determine whether there needs to be a ban on engaging in business resulting from such [campaign] contributions. That’s why it will soon ask the SEC to approve a rule that requires more details from firms, such as the timing of the contributions, to determine whether they were made before or after a firm was hired to sell the bonds.”
But other investment bankers have argued that the campaigns play a critical role in invigorating taxpayers who otherwise may not be inclined to vote on a referendum that essentially raises their taxes. They also say that municipalities need the firms’ input on those issues.
“We do not believe that issuers retain us as their investment banker because of any specific monetary contribution that we provide, and we do not include such in our proposals,” wrote Robert K. Dalton, the firm’s vice chairman.
For a full link to the article, click [here.]
