In a letter to Senate Banking Committee chairman Christopher Dodd, Federal Reserve Chairman Ben Bernanke said the regulatory agency would consider new regulations to curtail abusive lending, but wanted to make sure to avoid issues with legitimate credit. "With respect to the recent problems in the subprime mortgage market, the Board plans to consider how it might further use its rulemaking authority ... to address particular lending practices," Bernanke wrote. "We are mindful, however, that loan terms that may be harmful to some borrowers may provide benefits in other transactions."

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