by Calculated Risk on 10/12/2005 12:29:00 PM

UPDATE: Dr. Thoma excerpts speeches from Greenspan and Kohn too.

Reuters reports:

Bies warns on risky lending practices Federal Reserve Board Governor Susan Bies issued a warning on Wednesday on risky real-estate lending practices, saying banks could be hurt by higher interest rates or a decline in home prices.

"Banking supervisors have become concerned recently about apparent increased risk-taking in both commercial and real estate lending," Bies said in remarks prepared for delivery to the National Bankers Association annual convention in Beverly Hills, California.
...
"There is some concern that banks' home equity loan portfolios may be vulnerable to a rise in interest rates and, in some markets, a decline in home values," she said.
...
She said regulators were conducting a survey of banks' so-called affordability lending practices and said they might offer regulatory guidance on the subject in the near future.

Bies noted U.S. housing prices had jumped 13.4 percent in the second quarter from a year ago -- the biggest gain in more than a quarter century -- and said speculative buying appeared to be a factor behind the increase.

Here is the text of Governor Susan Bies speech: Regulatory Issues.