WASHINGTON -- Ten international banks are warning the Securities and Exchange Commission that they may stop providing letters of credit to issuers if they are pressured by the municipal market to provide added disclosure under the commission's recent legal interpretation.

"If additional disclosure requirements are imposed on banks, it is very possible that, as a result of the increased costs and complexity of compliance, many banks, particularly non-United States banks, may be forced to exit the market for municipal securities enhancement," Peter C. Kornman, a partner with Davis Polk & Wardwell in New York City, told the SEC in a six-page comment letter.

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