SEC probes Rhode Island muni offerings: treasurer

BOSTON/CHICAGO (Reuters) - An expanding probe by the Securities and Exchange Commission into financial information released by states and cities has reached Rhode Island, where the general treasurer said on Thursday the federal regulator is investigating the state's municipal bond offerings.

Treasurer Gina Raimondo said she was informed of the probe on Monday afternoon but had not received requests for information or further details from the SEC.

Last month, officials in Illinois and in financially troubled Harrisburg, Pennsylvania, said the SEC had opened disclosure inquiries in the fall.

In August, the SEC reached a settlement with New Jersey over that state's flawed disclosures in its bond documents. In the case of New Jersey and Illinois, two big debt issuers in the $2.8 trillion U.S. municipal bond market, the SEC zeroed in on disclosures and statements made about public pensions.

On Monday, the Municipal Securities Rulemaking Board, which writes the rules that the SEC enforces in the muni market, announced it was looking into boosting disclosure of state and local government pension problems to protect investors.

The subject of the SEC probe into Rhode Island was not clear, and Raimondo said that the agency had provided no further details or made requests for information.

"I was not entirely surprised to receive the SEC's call," Raimondo, who was elected in November and sworn in January 4, said in a statement. "It is regrettable to have inherited this situation so early in my administration before having an opportunity to fully address these issues."

Raimondo replacing Frank Caprio, who ran an unsuccessful campaign for governor.

This week Raimondo announced an assessment of every aspect of the state's Treasury, including a comprehensive review of Rhode Island's bond disclosure practices, and assembled a group of outside financial experts to work on the project.

The review will cover all contracts, investment portfolios, operations, cash management and investment policies, and practices around disclosure to institutional bond investors.

(Reporting by Ros Krasny in Boston and Karen Pierog in Chicago, Editing by James Dalgleish)