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Banks have been increasing holdings of municipal bonds in recent years, but a proposal by the Fed, OCC, and FDIC would make munis less attractive.
In the wake of Romneys loss, state leaders cite concerns over laws costs, regulatory burdens.
More than two-thirds of U.S. state economies strengthened in Q4.
Recovering economy boosts revenue; states Q1 saw 5.6% rise in taxes.
Alabama county declares biggest-ever municipal bankruptcy.