US House Panel Approves A Toned-Down Accounting Proposal
By Sarah N. Lynch, Of DOW JONES NEWSWIRES
WASHINGTON -(Dow Jones)- The House Financial Services Committee agreed by
voice vote to a much toned-down proposal Thursday that would allow a systemic
risk council of regulators to offer advice about accounting rules that could
pose problems to the broader marketplace.
The amendment to a larger systemic risk bill, proposed by Reps. Ed Perlmutter
(D., Colo.) and Frank Lucas (R., Okla.), comes after "mark-to-market" accounting
rules drew fire last fall from critics who said they exacerbated the financial
crisis.
Initially, the congressmen had proposed to give a new council of regulators
the power to override the Securities and Exchange Commission, which now has
final say on accounting matters. They would be able to do this if they believed
accounting issues may pose threats to the system.
But that proposal drew fire from critics who said it would compromise the
independence of the Financial Accounting Standards Board, which sets U.S.
accounting standards.
Amid those concerns, Perlmutter and Lucas altered their proposal. Now, the
council would be allowed to merely give advice on accounting matters to the SEC,
but not have the power to override the SEC.
-By Sarah N. Lynch, Dow Jones Newswires; 202-862-6634; sarah.lynch@
dowjones.com
(END) Dow Jones Newswires
11-19-091021ET
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