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Washington Roundup

SEC members seek more time to analyze fair-dealing guidance
Two Republican members of the Securities and Exchange Commission said they need more time to analyze the Municipal Securities Rulemaking Board's proposed fair-dealing guidance for underwriters. Industry groups welcomed the delay. "SIFMA has significant concerns about this proposal, as outlined in our comment letters to both the MSRB and the SEC," said Leslie Norwood, managing director and co-head of SIFMA's muni division. Read the SIFMA letter. The Bond Buyer (special access for readers of SIFMA SmartBrief)(12/12)

SEC sues SIPC to force payouts to Ponzi scheme investors
The Securities and Exchange Commission sued to force the Securities Investor Protection Corp. to pay investors in the alleged Ponzi scheme run by R. Allen Stanford. Stephen Harbeck, president at SIPC, said the agency will fight the SEC's lawsuit. "We believe that after literally years of looking at this, the conditions do not exist for SIPC to take action," he said. "I certainly hope that the SEC's actions don't raise false hopes among Stanford victims." The Wall Street Journal(12/13), The Washington Post/Bloomberg(12/13), Reuters(12/12)

Transaction tax would hurt financial sector and cut jobs, report says
A financial-transaction tax backed by Democratic lawmakers would weaken the U.S. as a global financial power and cause a short-term reduction in employment, a report from the Congressional Budget Office says. Traders might avoid the tax by restructuring investments or moving operations offshore, said Doug Elmendorf, the budget office's director. The Hill/On The Money blog(12/12)

Fed's approach to discount window prompts speculation
The Federal Reserve's policy meeting today is expected to be largely devoted to the communication efforts of the central bank. However, some economists speculate that the Fed might cut the 0.75% rate on its discount window as Europe's sovereign-debt crisis continues. The Wall Street Journal/Real Time Economics blog(12/12)

Analysis: Questions remain about quantitative easing
The Bank of England and the Federal Reserve began purchasing government bonds almost three years ago, and yet questions remain about how such quantitative easing works. The Bank for International Settlements suggested that quantitative easing might be subject to diminishing returns in lowering yields. However, its usefulness as a policy tool might trump concerns about its effects. The Wall Street Journal(12/13)