Steven Scholes was quoted August 18 by Bloomberg News on the state of New Jersey’s settlement of claims by the Securities and Exchange Commission that the state misled municipal bond investors by failing to disclose that its two biggest pension plans were underfunded. Regarding the possibility of additional SEC action against other states, Mr. Scholes said that “the only thing we can conclude here is that there is certainly more to come. The market is mammoth. It has been growing over time and has never really been subject to any sort of significant, comprehensive SEC scrutiny in the past as it is undergoing today.” Mr. Scholes added, "The SEC may seek to use fraud cases to encourage public officials to improve the quality of the information they provide. The SEC can drive more robust disclosures through this type of enforcement which is sure to make the municipal bond market sit up and take notice."