SEC rejects accounting rules shift

Federal regulators officially rejected a banking industry push to suspend accounting rules that force banks to value assets on their balance sheets at current market prices even if they plan to hold them for years.

The Securities and Exchange Commission issued a report to Congress that recommended maintaining so-called mark-to-market rules but suggested improvements to current accounting practices.

Proponents of the rules said suspending them would weaken transparency in firms’ financial statements.

The SEC study was mandated by Congress as part of the $700-billion financial bailout package.