From the abstract:
“Muni Bonds, Pension Liabilities and Investment Due Diligence” by Dr. Susan Mangiero, Dr. Israel Shaked and Mr. Brad Orelowitz, CPA examines financial reporting, fiduciary breach litigation, underwriting due diligence, pension funding and rating rules for the U.S. municipal bond market.
At a time when unfunded pension and health care obligations are accelerating the budgetary crisis for some municipalities, experts fear that current problems might be the tip of the iceberg. A new focus on accounting rules, the quality of disclosure to municipal bond investors and the due-diligence practices of underwriters, portfolio managers and advisers could mean heightened liability exposure for any organization with subpar practices. Add the history-making bankruptcy filing of Detroit and other public units into the mix, and it is clear that headlines about municipal bond-related bankruptcies are unlikely to go away anytime soon.