If banks do not closely watch their home equity lending standards, they could face the same problems as the troubled finance companies in the sector, the OCC says.

"Banks need to grow responsibly, or we'll all be in the subprime business some day," said David D. Gibbons, deputy comptroller for credit risk at the Office of the Comptroller of the Currency. He spoke this week at the Consumer Bankers Association's annual home equity conference here.

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