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Fmr. FDIC Chair warns of ‘moral hazard’ in bank regulation process

Following a tumultuous month for the banking sector, Sheila Bair, who was the FDIC Chair during the 2008 financial crisis, tells Ali Velshi that bank regulators need to be careful of a “moral hazard” because without market discipline as a driving force, some issues could get overlooked. Bair also notes a major shortcoming with banks currently is the fact getting federal help isn’t a luxury afforded to smaller banks, big banks fall to a point of needing a bailout and it’s a “problem we really need to deal with.”


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