Federal Reserve Chairman Alan Greenspan is concerned that the banking industry may forget how bad credit judgments, especially in areas like real estate, led to the demise of thousands of banks between 1985 and 1992, he told attendees Tuesday at the American Bankers Association's conference in New York.Mr. Greenspan urged banks to use effective credit risk management strategies, including the use of securitization and derivatives, and to remember that "accepting narrow or nonexistent spreads in order to retain market share is a losing strategy." He indicated that lenders have done a good job of managing risk so far but that he is concerned about the future. The Federal Reserve can be found online at http://www.federalreserve.gov.

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