Market Value Accounting: Debt Investment Securities Held by Banks

Pursuant to a congressional request, GAO provided information on the effect that market-value accounting could have on banks' financial statements, focusing on the: (1) composition of bank investment security holdings and their significance in relation to total bank assets; (2) impact of fluctuating interest rates on the market values of bank debt investment security portfolios; and (3) maximum potential effects on earnings and equity capital.