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Greenspan issues bank warning
Alan Greenspan, the former chairman of the Federal Reserve, warned yesterday that US banks may have to raise significant amounts of money before the economy can recover.
“There is still a very large unfunded capital requirement in the commercial banking system in the United States,” he said. Greenspan, who has been blamed by some for contributing to the credit pile-up that spawned the global recession, said the US economy had improved. But he also pointed out that there were still problems in the American housing market, which could cause a mortgage crisis.