Greenspan Urges Tighter Regulation After Economic `Breakdown'

11/23/2008 05:12 am ET | Updated May 25, 2011
  • Scott Lanman and Steve Matthews Bloomberg

Former Federal Reserve Chairman Alan Greenspan called for tighter regulation of financial companies, distancing himself from the free-market culture that he helped to create.

Firms that bundle loans into securities for sale should be required to keep part of those securities, Greenspan said in prepared testimony to the House Committee on Oversight and Government Reform. Other rules should address fraud and settlement of trades, he said. Greenspan's office released the text ahead of the hearing scheduled for 10 a.m. in Washington.

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