Banking system on the verge of a 'Bear Stearns moment': Former FDIC chair

While some observers fear federal officials' actions following the collapse of  Silicon Valley Bank and Signature Bank will fuel a"moral hazard," one former Federal Deposit Insurance Corporation chair cautions the U.S. banking system is nearing another "Bear Stearns moment."

"I think this is more of a Bear Stearns moment. I think a lot of people, including me, said when they bailed out Bear Stearns, they increased moral hazard. They created an expectation of further bailouts," former FDIC Chair Sheila Bair said Friday on "Cavuto: Coast to Coast" Friday. 

The Treasury Department, Federal Reserve, and the FDIC said in a joint statement Sunday that they were taking "decisive actions to protect the U.S. economy by strengthening public confidence in our banking system" following the implosion of SVB. Depositors of the SVB would have access to all of their money