Federal Reserve Board Chairman Alan Greenspan warned bankers on Saturday to review their lending practices and urged them to be cautious, giving another clue the Fed may be about to raise interest rates.
"Some modest underwriting laxity has a tendency to emerge during good times," Greenspan said in a speech to the Independent Bankers Association of America.
The Fed's Open Market Committee is scheduled to meet Tuesday and, most analysts believe, will try to prevent inflation by increasing the benchmark rate banks charge each other for overnight loans by a quarter of a percentage point to 5.5 percent.
That probably would prompt banks to raise the prime rate charged their best business customers, now at 8.25 percent, raising borrowing costs for millions of businesses and consumers who pay rates tied to the prime.
Letter: McVeigh used
DENVER _ Oklahoma City bombing defendant Timothy McVeigh used methamphetamine more than a year before the deadly blast, thinking it would improve his memory, according to a letter recovered by the FBI.
McVeigh made the admission in a 1993 letter to his sister, Jennifer, the Denver Post reported Saturday.
The powerful stimulant can cause weight loss, feelings of joy and paranoia and even homicidal behavior.
It was not clear if McVeigh used the illegal drug once or several times.
McVeigh's attorney, Stephen Jones, said the allegation has played little role in the bombing case and didn't know if it will or can be used as evidence in the trial.
born to N.Y. couple
NEW YORK _ A 30-year-old woman gave birth to identical quadruplet girls Friday and was hospitalized in good condition.
"You probably have a better chance of winning the lottery," said Dr. Gary Steinman, who delivered Iris Borges' four daughters by Caesarean section.
The infants were born seven weeks premature.
Steinman figured a quadruple birth occurs only once in every 11-million births. Borges was not taking fertility drugs, he said.