WASHINGTON -- Federal Reserve Board Chairman Alan Greenspan on Friday called recent losses in the bond market "substantial," and said they were due in part to flight by investors from bond mutual funds.

"In recent weeks, the worldwide financial system has been subject to considerable stress, with substantial losses in the combined stock and bond markets in the United States," Greenspan said in a speech delivered at Wartburg College in Waverly, Iowa. Fed officials distributed the text of the speech in Washington.

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