The threat of “moral hazard” post-SVB collapse

Part of the government’s rescue actions amid the collapse of Silicon Valley Bank and Signature Bank was the establishment of a new Fed emergency lending program for banks in crisis. According to analyst Joseph Wang, the program could incentivize riskier behavior at banks. Credit Suisse, one of the world’s largest banks, has been extended a lifeline by the Swiss central bank. And, Biden administration has proposed stricter standards to regulate so-called “forever chemicals” in drinking water.