State Sanctioned Fraud
4 Business and Bankruptcy Journal 1 (2016)
25 Pages Posted: 3 Mar 2020 Last revised: 20 May 2021
Date Written: 2016
This article examines the new trend of the Securities and Exchange Commission going after state governments for securities fraud. It considers the SEC and its ability to issue cease and desist orders and an overview of the recent SEC enforcement actions against the states and makes the case for regulating the municipal bond market. The market is opaque, and many workers rely on pensions as the cornerstone of their income during retirement. The consequences of a pension system collapse could be calamitous for workers. Conversely, research shows that transparency in the bond market correlates with a number of benefits.
Keywords: Bond Market, Bonds, Municipal Bonds, Municipal Bond Market, SEC, Securities Regulation, Securities Fraud, Municipal Finance, Local Government, State Government
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