WASHINGTON - At a hearing on bank failures Tuesday, regulators and lawmakers acknowledged the risks of subprime lending but expressed reservations about a Federal Deposit Insurance Corp. proposal to make the most active subprime lenders set aside more capital.

FDIC Chairman Donna A. Tanoue, one of four regulators to testify before the House Banking Committee, said subprime lenders are 20 times more likely than other banks to be on the agency's "problem" list. They accounted for six of the last 11 failures, she said.

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