Alan Greenspan, the former US Fed chairman, said the credit crisis had exceeded anything he had imagined and admitted he was wrong to think that banks would protect themselves from financial market chaos. In the second of two days of Capitol Hill hearings, he accepted that the crisis had “found a flaw” in his thinking but said that the kind of heavy regulation that could have prevented it would have damaged US economic growth. In the same hearing, SEC head Christopher Cox said he strongly supports merging his agency with the Commodity Futures Trading Commission, the WSJ reports.
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