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Bear Stearns

The Fed and the ‘moral hazard’

By Francesco Guerrera and Ben White in New York

Published: March 25 2008 00:00 | Last updated: March 25 2008 00:00

Wall Street bankers say that over the past week, the Federal Reserve has been in unusually close contact with them, asking for information and data that are the traditional purview of the Securities and Exchange Commission.

For many banking executives, this is the first step in a long legislative process that could end up with the Fed relieving the SEC of its regulatory powers over investment banks.

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