WASHINGTON -- Federal Reserve Governor John P. LaWare warned Congress Thursday against creating a new government bureaucracy to oversee a secondary market for business loans.

A bill introduced by Paul E. Kanjorski, D-Pa., could do just that, he said. By requring the Treasury Department to certify participating institutions, set capital standards and loss reserve requirements, and arrange for regulatory exams, Congress "would create a parallel regulatory structure," the Fed governor said.

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