"Saxon vigorously disputed the claim by William MeChes-j ncy Martin, chairman of the Federal Reserve Board, that the quality of bank credit is deteriorating.</br></br>Martin said last month that banks are making too many risky loans because of present easy money policies.</br></br>Testifying before the House Banking and Currency Committee, Saxon made no mention of Martin or the Fed but left no doubt that they were his target.</br></br>He said the ?ÛÏdeterioration"" charge is misleading because , ?ÛÏit implies that the banks have failed to exercise prudent banking judgment and that the regulatory mechanism has broken down."" Saxon?Ûªs agency is the ?ÛÏregulatory mechanism?Û? for national banks.</br></br>! Saxon offered figures from [ a random survey of 151 banks showing that the proportion of ?ÛÏcriticized?Û? loans ?ÛÓ those found by bank examiners to be risky ?ÛÓ actually decreased in a majority of them over the past three years."