Bies - Insolvent co's should be allowed to fail

US - The financial collapse of Enron Corp. (ENRNQ) didn't have a widespread effect on the U.S. economy, Federal Reserve Governor Susan Bies said Thursday.

She was answering questions from the audience after delivering prepared remarks about community banking to a bankers' conference in Columbus, Ohio.

When Enron went down, "there was nary a ripple in the rest of the economy," Bies said. When large companies are no longer solvent, they should be allowed to fail, she said.

Bies said Enron's demise