Federal Reserve Board Chairman Alan Greenspan has sharply criticized an industry proposal to circumvent a ban on interest- bearing corporate checking accounts.

Writing to several lawmakers, Mr. Greenspan said permitting up to 24 withdrawals per month-four times more than currently allowed-from money market deposit accounts would make it tougher for the Fed to conduct monetary policy because more banks would create retail sweeps programs.

Subscribe Now

Access to authoritative analysis and perspective and our data-driven report series.

14-Day Free Trial

No credit card required. Complete access to articles, breaking news and industry data.