Members of Congress Urge Suspension of Mark-to-Market Accounting

More than 60 U.S. lawmakers urged the SEC to immediately suspend mark-to-market accounting. In a letter to SEC Chairman Cox, the legislators wrote that the rule, "while well-intended, has the unintended consequence of exacerbating economic downturns by hamstringing the ability of banks to make loans to consumers and businesses."

The group, from both parties and including two senators as well as members of the House, called on the Commission to expedite new guidance on a mark-to-value mechanism. In the interim, the letter urged the use of estimated fair value using the "best available information" of the instrument's value.