Fed's Bies says bad mortgage debt not problem

Federal Reserve governor Susan Bies said in a speech Tuesday 20 February the bulk of the mortgage market was not troubled by bad debt problems, which were concentrated in the subprime, tarnished-credit sector.

"One segment of this market ... is starting to behave in a very problematic way and that is the subprime adjustable rate mortgages," she said in the speech to the Duke University Fuqua School of Business.

"In the aggregate, what I'm talking about is a sliver that is 7 to 8% of all outstan