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MAY 18, 15:24 EST
Greenspan Talks About Reducing Risk
By MARCY GORDON
AP Business Writer
Alan Greenspan
AP/J. Scott Applewhite [20K]
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WASHINGTON (AP) — Bankers and regulators are getting better at reducing risks and breaking a cycle of tighter lending in a slumping economy and expanded credit in a recovery, Federal Reserve Chairman Alan Greenspan said Friday.
In a speech to state banking regulators, Greenspan said they should not view every bank failure as a deficiency on their part.
``It is not our role to prevent all failures, let alone to guard against every earnings decline,'' the central bank chief said in a speech prepared for a meeting of the Conference of State Banking Supervisors in Traverse City, Mich. Copies of the speech were released in Washington. ...
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Last year seven of federally insured banks failed. So far this year, the failures of First Alliance Bank and Trust Co. of Manchester, N.H., and Malta National Bank of Malta, Ohio, have cost the insuring Federal Deposit Insurance Corp. a total of $199,000.
wire.ap.org |
