skip to main contentskip to popular page linksskip to main navigation links
photo of Mike Capuano Michael E. Capuano representing the 7th district of Massachusetts in the U.S. House of Representatives Go to the House of Representatives homepage
Like Mike on Facebook Visit Mike's video channel on YouTube Like Mike on Facebook


 My Schedule My Voting Record District Maps Register To Vote FAQ Site Map e-Updates
Print Version-Press Release: Capuano and Cleaver: Municipal Bonds to be Rated with Fairness


Capuano and Cleaver: Municipal Bonds to be Rated with Fairness

March 17, 2010

Washington, DC — Today, Senior House Financial Services Committee members Reps. Michael Capuano (D-MA) and Emanuel Cleaver (D-MO) made the following statements after Moody's Investor Service yesterday changed the way municipal bonds are rated. Previously, Moody's and others rated municipal securities, which historically have had extremely low default rates, on a different scale. As a result, this had the effect of driving up the costs to cities and states. Financial Services Committee Chairman Barney Frank and Reps. Capuano and Cleaver pushed for legislation to end this unfair treatment and to ensure that municipal government bonds are rated based on their ability to repay the debt and their historical default. This legislation was included in the comprehensive Wall Street Reform and Consumer Protection Act that the House passed in December. Senator Dodd also included similar language in the bill he unveiled this week. Capuano and Cleaver are both former mayors, and they have direct knowledge of this unfair treatment. Cleaver and Capuano also called on other rating agencies to eliminate the dual rating system.

"For years municipalities across the country have been forced to pay billions of taxpayer dollars to insure bonds that have nearly no chance of defaulting. I'm pleased to see the industry step up to the plate and make these needed changes to the way they rate cities," stated Congressman Mike Capuano.

"In the last 50 years, only one city has ever defaulted on a municipal bond. These general obligation bonds not only carry the full faith and credit of the municipality and its taxpayers, they are used to improve our communities — investing in schools, infrastructure and public works. I am pleased to see that Moody's has recognized these are solid investments, backed by the good people in cities and towns across the country who are 99.99 percent responsible in their repayment. I urge the other credit rating agencies to change their unfair credit rating structure which has cost taxpayers millions if not billions," said Congressman Emanuel Cleaver, II.

Contact: Alison M. Mills 617-621-6208 (Capuano)
Steve Adamske (202) 225-7141 (House Financial Services Committee)
Elizabeth Esfahani (202) 226-3314 (House Financial Services Committee)

12,456 subscribers





Home | About | Biography | Contact | Issues | Links | News | Schedules | Services

E-Updates | Site Map | Privacy Policy | Accessibility

110 First Street
Cambridge, MA 02141
P: (617) 621-6208
F: (617) 621-8628

  Constituent Services Click to close menu
  Casework and Assistance
  Immigration Casework
  Grants and Federal Domestic Assistance
  Presidential Greetings
  Washington, D.C. Attractions
  U.S. Service Academy Nominations
  Media Center Click to close menu
  Press Items
  Recent Votes
  Video and Audio
  Legislative Work Click to close menu
  Recent Votes
  Voting Record
  Sponsored Legislation
  Earmark Requests
  Committees and Caucuses
  Ethics Task Force
  Schedules Click to close menu
  My Schedule
  House Floor Summary
  Weekly House Schedule
  Annual House Calendar
  Weekly Senate Schedule
  Our District Click to close menu
  The 7th District Over the Years
  Nobel Prize Winners
  Interesting facts about Massachusetts
  Massachusetts Links
  Links Click to close menu
  Massachusetts Links
    State Government
    About the 7th District
    Arts, Culture and Attractions
    Chambers of Commerce
    Colleges and Universities
    Exploring Massachusetts
    Hospitals and Health Organizations

  Federal Government Links - Official Government Portal
    Legislative Branch
    Executive Branch
    Judicial Branch
    Federal Agencies
    Kids' Pages
    Register to Vote
    Washington, D.C. Attractions
    Business Opportunities with the Government
  Contact Click to close menu
  District Office
  Washington, D.C. Office
  Office Hours Program
  Community Meetings
  E-mail Me