The Municipal Securities Rulemaking Board last week clarified and strengthened its proposed political contributions rule, and the changes are all to the good, a praiseworthy instance of self-regulation in action.

"Under the revised rule, a dealer can make political contributions to an issuer or transact business with an issuer -- but not both. It is just that simple," said David Clapp, MSRB chairman, at a press briefing held last Thursday to announce the modified rule.

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