Experts flag moral hazard risk as U.S. intervenes in SVB crisis

U.S. regulators may have stemmed a banking crisis by guaranteeing deposits of collapsed Silicon Valley Bank, but some experts warn that the move has encouraged bad investor behavior

Separately, officials said depositors of New York's

"... If the Fed is now backstopping anyone facing asset/rates pain, then they are de facto allowing a massive easing of financial conditions as well as soaring moral hazard," Rabobank bank strategists Michael Every and Ben Picton wrote in a note to clients.Because only the first $250,000 of each deposit at a U.S.

Some analysts said the U.S. actions were not a bailout, because shareholders and unsecured debtholders of SVB would not be covered.

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