WASHINGTON -- Regional bank representatives are warning that the Financial Accounting Standards Board's recent proposal to require banks to value their investments at current market prices could have a major impact on the municipal market, especially small issuers.

They warn that the so-called mark to market plan, which the FASB decided to move forward with last week, could discourage banks from buying longer-term municipal bonds because they would have to hold them to maturity to avoid the new accounting requirement.

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