WASHINGTON - The four federal bank regulators told Congress that structured notes do not pose a threat to the industry, but a key lawmaker said the agencies are just living in blissful ignorance.

"While the bank regulators claim that they properly regulate and supervise the derivatives activities of banks, as far as structured notes go, the regulators simply don't know what the risks are," said Rep. Henry B. Gonzalez, D-Tex.

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