Pittsburgh is facing scrutiny over allegations that city officials provided misleading financial information to investors in connection with municipal bond offerings. The allegations have raised questions about the accuracy of disclosures provided to investors and whether regulators may take a closer look at the city’s bond issuance practices.
Given the allegations, it’s possible the Securities and Exchange Commission will investigate Pittsburgh, Bracewell’s Edward Fierro told The Bond Buyer.
“If you have a misstatement or omission or any type of misleading information in an offering document which is being used for investors as they purchase the bonds, it’s a problem,” Fierro said.