Securities and Exchange Commissioner Annette Nazareth, who leaves the SEC today, contends state and local governments should comply with the generally accepted accounting principles issued by the Governmental Accounting Standards Board, warning that a failure to do so could lead to future accounting debacles.

In an interview Monday, Nazareth, the commission’s lone Democrat since September, expressed strong support for the municipal market initiatives SEC chairman Christopher Cox unveiled last summer, which include a call for Congress to require all issuers conform to GASB standards. The SEC estimates that nearly 20,000 of the roughly 50,000 muni issuers do not.

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