Thu Oct 16, 11:42 AM ET NEW YORK/WASHINGTON (Reuters) - The U.S. Securities and Exchange Commission has agreed to a request from banks that could allow them to delay write-downs on certain securities that have dropped in value due to the credit crisis.In a letter late on Tuesday , the chief accountant of the SEC told Financial Accounting Standards Board (FASB) Chairman Robert Herz, that banks, at least temporarily, could treat so-called perpetual preferred securities more like debt securities when assessing them for impairments.
In explaining the decision, SEC Chief Accountant Conrad Hewitt said such securities were "hybrid" securities with equity and debt-like characteristics that presented a particular challenge to banks.
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