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SEC must look at short-selling area, uptick rule - Schapiro

WASHINGTON, Jan 15 (Reuters) - Mary Schapiro, president-elect Barack Obama's nominee to head the U.S. Securities and Exchange Commission, in testimony at a U.S. Senate Banking Committee hearing:

* Says SEC needs 'to take a step back' and look at entire area of short-selling and whether the uptick rule should be reinstituted.

* Says SEC must take fresh look at how it examines mutual funds, investment advisers, remaining investment banks, other entities.

* Says fair value accounting generally provides transparency, better decisionmaking for investors but some circumstances where hard-to-value asset writedowns have 'real implications' for business.

* Says as market creates new products U.S. regulators must examine systemic implications, investor protection issues.

* Says important to preserve innovation in U.S. capital markets.

* Says worries about 'revolving door' with SEC employees going to work for industry but worries about restrictions that might discourage agency's ability to attract top talent.

* Says SEC should examine potential conflicts of interest for SEC employees.