Warning of a regulatory crackdown, Federal Deposit Insurance Corp. Chairman Donna A. Tanoue on Tuesday highlighted three critical aspects of subprime lending that are under scrutiny by examiners.

In a fiery speech at the America's Community Bankers convention in Orlando, Ms. Tanoue said institutions making subprime loans must have tough underwriting standards, adequate reserves for losses, and higher-than-average capital ratios. FDIC examiners will take supervisory action if bankers ignore any of those three elements, she said.

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