Congressman Vito Fossella (R-NY13) today released the following statement in response to a speech by Securities and Exchange Commission (SEC) Chairman Chris Cox on municipal securities disclosure:
“I commend Chairman Cox for his recognition of the need to improve disclosure in the municipal securities markets. The municipal bond market has grown significantly over time in size, complexity and ownership by retail investors. Yet the quality and timely disclosure of the financials of muni issuers has been lacking. There needs to be greater transparency to protect investors, stop fraud and prevent a recurrence of the near defaults we’ve seen in recent years. A lack of transparency puts investors at unnecessary risk. In addition, it could negatively impact important infrastructure such as roads, bridges and highways that are funded by these bonds. We should ensure a high standard of transparency extends to the $2.4 trillion dollar municipal market. I am pleased the Chairman has expressed a willingness to more aggressively use the SEC's existing regulatory authorities to address the inadequacies, and I look forward to working with the agency on potential legislative remedies.”
