FDIC, Fed policy gap widens

Federal Deposit Insurance Corp. Chairwoman Sheila Bair wants regulators to ban specific high-risk practices, while Federal Reserve Gov. Randall Kroszner warned that excessive regulatory action could unintentionally siphon off access to credit. The comments of the two officials, made during a House Financial Services Committee hearing Wednesday, further widen the policy gap between the two agencies. The Democratic Congress has been pressuring bank regulators to protect consumers more aggressively.

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