Federal Reserve now admits that Moral Hazard in Banking and Finance is a serious problem

Since I first mimeographed a paper at the Federal Reserve Board (Washington, D.C.) in 1991 on banking and finance, I have faced many unseemly questions from Fed officials and associated academic 

1. "How do you know moral hazard exists?"
2. "Can you prove/test that moral hazard exists?"
3. "Who are 'you' to tell how 'our' banks should be regulated?"

For full Article