WASHINGTON - Federal Reserve Governor Lawrence B. Lindsey warned Wednesday that reform of the Community Reinvestment Act will add to the financial and regulatory burdens of the banking industry, at least in the short run.

Even if the President's initiative to refocus the law eventually cuts the paperwork burden, adjusting to the new rules will impose heavy costs on the industry, he said.

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.