From Prof Stephany Griffith-Jones.

Sir, There is increased discussion of the possible need for the Fed and the US Treasury to act in "unfamiliar ways" if the situation continues to deteriorate ("Why the Fed must act in unfamiliar ways", March 18). This will not only be costly, but would on its own create major moral hazard and encourage in the future the type of unacceptable behaviour among different financial actors that Martin Wolf so clearly describes ("Why today's hedge fund industry may not survive", March 19).