First National Bank (FNB) purchased a table for $500 at the Governor's reelection fundraising dinner last fall. FNB President Sally Holmes tells Mary Watkins, the municipal securities principal, that the bank is planning to participate in the upcoming state highway bond. What does Ms. Watkins tell President Holmes?

Question

Quizplus · Accepted Answer

According to MSRB Rule G-37, which governs political contributions by municipal finance professionals, a bank is prohibited from engaging in municipal securities business with an issuer for two years after making a contribution to an official of that issuer who can influence the award of a municipal securities business. The purchase of the table at the fundraising dinner counts as a contribution, and as such, the bank cannot participate in the upcoming state highway bond.

First National Bank (FNB) Purchased a Table for $500 at the Governor's