US Fed to introduce new mortgage rules

08 July 2008 19:18  [Source: ICIS news]

HOUSTON (ICIS news)--The Federal Reserve Board (Fed) will issue new rules on mortgages, which will address the loose lending standards that contributed to the collapse in the US housing market, Chairman Ben Bernanke said on Tuesday.

The Fed will issue the new rules next week, Bernanke said.

Housing is important to the chemical industry in that each house contains more than $16,000 (€10,240) worth of chemistry, according to the American Chemistry Council (ACC).

In other news, Bernanke said new legislation may be needed to prevent a repeat of the credit crisis that started last year.

"More generally, in the longer term, the Congress should consider whether our current regulatory structure needs to be modernised to address the changes that have occurred in the structure of the financial system, including the enormous growth of nonbank financial institutions and the development of new financial products," Bernanke said.

($1 = €0.64)

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