Many Wall Street firms are criticizing a proposal by the Municipal Securities Rulemaking Board to restrict political contributions, saying the plan is weak and could create a competitive disadvantage for some market players, according to sources close to the board.

The sentiment could convince the board to alter its proposal, which in its current version would bar industry executives from making contributions for the purpose of obtaining or keeping municipal underwriting business. Any refined proposal should make the restriction more explicit and more difficult to circumvent, sources say.

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