In two administrative enforcement actions last month, the SEC charged two municipalities – Harrisburg, Pa. and South Miami, Fla. – with securities fraud. These high-profile actions sounded alarm bells and raised concerns about possible securities violations involving other state and local governments. But while these two actions have grabbed a great deal of attention, the unfortunate
Up Next: Securities Suits Against Municipalities?
Among the many firms and entitles struggling with the effect of the global economic downturn are a host of municipalities, many of whom face diminished tax revenues, unfunded pension and health care liabilities and aging infrastructure. A number of these municipalities also labor under a burden of debt undertaken when times were flush. Financial woes