Fed's Lacker-banks can absorb subprime losses

FREDERICK, Md., June 6 (Reuters) - U.S. banks are well positioned to absorb any losses from the rise in delinquencies and foreclosures in U.S. mortgage markets, Richmond Federal Reserve President Jeffrey Lacker said on Wednesday.

"We're confident that the magnitudes of the exposures that are on the books in the banking sector are quite within their capacity to absorb," Lacker said in response to questions after a speech.

((Editing by Theodore d'Afflisio; Reporting by Mark Felsenthal 202 898 8329)) Keywords: USA FED/LACKER BANKS

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