Punish wrongdoing, says Greenspan

New York: Wall Street regulators should punish wrongdoing while also avoiding over-regulating financial markets, Federal Reserve Chairman Alan Greenspan said.

“Some practices and rules have outlived their usefulness and require updating,” Greenspan added.

“But in so doing we need to be very careful not to undermine the paradigm that has so effectively governed voluntary trade.”

Greenspan, 78, said reputation and integrity have been historically important to Wall Street.