BANKING & FINANCE - Oct. 11, 1993

Changes in Muni Donations Rule Urged: Proposed restrictions on political contributions by New York’s municipal bond firms should be amended before a temporary ban on donations becomes permanent, a group representing state and city officials said. Most of the nation’s largest firms in the $1.2-trillion municipal bond business have imposed temporary moratoriums on donations to state and local political candidates in reaction to the proposed regulations. The Public Securities Assn., a trade group that represents securities firms, asked its members to halt political contributions until the proposals are clarified. Firms that have announced they are banning contributions accounted for more than 60% of this year’s $220 billion in new municipal bond sales, according to figures from Securities Data Co.