The New York Times offers an interesting update on the issue of muni bond consultants, and whether they are, well, a bit out of control. A handful of these guys pitch all sorts of arcane financial products at municipalities and rake in lots of fees, even as some of these strategies blow up.

The interest rate swap market has not been kind to many of these issuers. While bond underwriters are barred from making political contributions, financial advisers are not, notes the Times, which focuses on CDR Financial Products of Beverly Hills. It "left pain in its wake from Florida to New Mexico." The Municipal Securities Rulemaking Board is now appealing to Congress to expand its authority to cover consultants. But whether the reform agenda in Washington will rally around this cause remains unclear. 

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- here's the article

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