Fed's Yellen -- Losing sleep over financial crisis

VANCOUVER, May 13 (Reuters) - San Francisco Federal Reserve Bank President Janet Yellen said on Tuesday she had lost a lot of sleep over the U.S. financial crisis and still worried about the potential for further declines in house prices.

Yellen, answering audience questions after a speech to the CFA Institute conference in Vancouver, also said that when confronting bubbles in asset markets, the Fed's main responsibility was financial stability.

She also warned of a worrisome feedback loop developing between falling house prices and tightening credit conditions in the economy.

Yellen added that it would be "completely unacceptable" for the Fed to allow a repeat of the 1970s, a period of stagflation when price rises continued to accelerate despite a weakening in the overall economy.

(Reporting by Ros Krasny; writing by Burton Frierson, Editing by Chizu Nomiyama)