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Friday, May 08, 2009
Congress Considers Federal Insurance on Muni Bonds
By Rich Edson, Washington Correspondent
FOXBusiness
Congressional Democrats are working on measures to offer government insurance for municipal bonds and may introduce a bill as early as next week, people familiar with the situation tell FOX Business.
This move comes as local governments are trying to convince investors to finance public debt.
One of the people familiar with the matter says the House Financial Services Committee will move a bill for the federal government to offer reinsurance for municipal bond insurance. The source says lawmakers have also been pushing for the Federal Reserve to do so.
