SEC: IOUs Should Be Treated as Investment Securities

On Thursday, the U.S. Securities and Exchange Commission recommended that California's IOUs be treated as securities under the federal securities law. A regulated market would help add order and reduce the risk of fraud, according to state officials. Since last Thursday, California has issued more than $350 million in IOUs and plans to issue $2.5 billion more by the end of the month.

• "U.S. Declares California's IOUs Are Investment Securities" (Kasler, Sacramento Bee, 7/10).
• "SEC Rules That IOUs Should Be Treated as Securities" (Anderson, Sacramento Business Journal, 7/9).