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

To continue reading...

You need to sign in to use this feature. If you don’t have a Central Banking account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an indvidual account here: