CHICAGO -- Federal regulators' early-intervention policy for ailing banks and thrifts, which takes effect Dec. 19, poses a "fiscal challenge" for the U.S. economy, the president of Duff & Phelps Investment Management Co. says.

In his investment-outlook report for October, Robert D. Milne called the toughened enforcement of capital guidelines "a major negative for the economy and for the federal budget."

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