Former Federal Reserve chairman Alan Greenspan has admitted some mistakes in his assumptions about deregulation.

Alan Greenspan, who headed America’s central bank for more than two decades, has admitted some flaws in the system. During his term from 1987 to 2006 he successfully handled many challenges in American economy like Black Monday in 1987, Dot Com Bubble in late 90s and WTC attack in 2001.

In testimony to the House Government Oversight Committee, Mr Greenspan said that it had turned out to be much broader than anything I could have imagined.

"We are in the midst of a once-in-a century credit tsunami. I cannot see how we can avoid a significant rise in layoffs and unemployment. I made a mistake in presuming that the self-interest of organizations, specifically banks and others, was such that they were best capable of protecting their own shareholders.” he said.