Fed chief urges caution

Friday, April 16, 2004 | 8:59 a.m.

ATLANTA -- Regulators should punish wrongdoing while also avoiding over-regulating financial markets, Federal Reserve Chairman Alan Greenspan said today. "Some practices and rules have outlived their usefulness and require updating," Greenspan told a financial markets conference.

"But in so doing we need to be careful not to undermine the paradigm that has so effectively governed voluntary trade. Rewriting rules that have served us well is fraught with the possibility for collateral damage," Greenspan said.

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