WASHINGTON — A report due today from the special inspector general created to police the Troubled Asset Relief Program questions the Treasury Department's decision to value the government's investment in hundreds of financial institutions at cost, particularly since the value of so many banks has fallen in recent weeks.

"In light of recent market volatility and the distressed financial condition of some of the entities in which the Treasury has made an investment," the report says, "the cost-based valuation methodology will not provide an accurate view of the value of the securities over time."

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