Greenspan Urges Tighter Regulation After Market `Breakdown'

One of the most famous acolytes of Libertarianism, who arguably has more to do with the global financial meltdown than anyone in recent history, is now calling for increased regulation...funny that....

Oct. 23 (Bloomberg) -- Former Federal Reserve Chairman Alan Greenspan called for tighter regulation of financial companies, distancing himself from the free-market culture that he helped to create.

Firms that bundle loans into securities for sale should be required to keep part of those securities, Greenspan said in prepared testimony to the House Committee on Oversight and Government Reform. Other rules should address fraud and settlement of trades, he said. Greenspan's office released the text ahead of the hearing scheduled for 10 a.m. in Washington.

The comments contrast with Greenspan's aversion to increasing financial supervision as Fed chairman from August 1987 to January 2006. Earlier this decade, he warned lawmakers against tightening oversight of energy derivatives.