The Federal Reserve Board on Thursday released a letter from Chairman Alan Greenspan to Rep. John J. LaFalce confirming the application to banks of the prohibition contained in section 5 of the Federal Trade Commission Act against unfair or deceptive acts or practices.

The letter also confirms that the federal banking agencies are legally authorized to use enforcement powers under section 8 of the Federal Deposit Insurance Act against violations of this prohibition.

Attachment (PDF copy of the letter)