Senator slams muni bond regulator as ‘incestuous’

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Sen. John Kennedy, Republican of Louisiana

Sen. John Kennedy, a Republican of Louisiana, on Tuesday slammed the self-regulatory body that oversees the $3.8 trillion muni-market “an incestuous…little club” that needs to be overhauled.

Kennedy called for reform of the Municipal Securities Rulemaking Board during comments at a Senate Banking confirmation hearing for Elad Roisman to be a member of the Securities and Exchange Commission. The SEC has oversight responsibilities for the MSRB.

Kennedy noted that the MSRB board is structured to have 11 public members and 10 representatives of regulated entities.

Kennedy said he didn’t think that anyone on the board represented consumers.

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