Greenspan warns of risks from mortgage giants

In testimony on Wednesday 6 April Federal Reserve chairman Alan Greenspan called on Congress to curb the rapid growth of Fannie Mae and Freddie Mac, telling Senators this was vital to cut the risks the mortgage finance giants pose to the U.S. financial system.

"World-class regulation, by itself, may not be sufficient and, indeed, might even worsen the potential for systemic risk if market participants inferred from such regulation that the government would be more likely to back GSE debt in th