WASHINGTON -- Federal regulators will be asked to investigate whether underwriters and lawyers advised an East Baton Rouge, La., authority of its disclosure responsibilities if the issuer proceeds with a controversial redemption Thursday, a Municipal Securities Rule-making Board official said.

"If the redemption goes forward, we will ask the Securities and Exchange Commission and the National Association of Securities Dealers to determine whether or not the underwriters fulfilled their responsibilities" in the 1989 refunding that escrowed to maturity some of the East Baton Rouge Mortgage Finance Authority's housing bonds, said Christopher A. Taylor, the MSRB's executive director.

Limited Time Offer

Save $400 off your subscription. Special offer ends April 30, 2017.

14-Day Free Trial

No credit card required. Complete access to articles, breaking news and industry data.