The long debate over market value accounting for investment securities has entered a new phase with the publication Sept. 9 of an exposure draft by the Financial Accounting Standards Board that would require mark-to-market treatment for all but a narrowly defined set of securities. That set definitely does not include mortgage-backed derivatives.

"This wffl mean a huge change in accounting for financial institutions,' said Donna Fisher, manager of accounting policy for the American Bankers Assaciation. "It will affect 30% of banks' assets."

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