During a Financial Crisis, the Fed and Other Central Banks

During a financial crisis, the Fed and other central banks often adopt an "extend and pretend" policy in their emergency lending activities.Which of the following is not a consequence of this policy?

A) It limits the potential for insolvent banks to drag down the solvent ones as well.
B) It enhances the moral-hazard problem going forward; banks will be more likely to engage in risky behavior.
C) It allows many poorly managed firms that have become insolvent due to making bad investments to avoid well-deserved bankruptcies.
D) It increases the chances of the Fed itself (or another central bank) being dragged into its own bankruptcy crisis.