Two actions by the Fed during Alan Greenspan's term as chairman have been identified as possibly contributing to the financial crisis in 2008.Which of the following was one of those actions?

Question

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The decision by the Fed during 1998 to help save the hedge fund Long Term Capital Management, which had overleveraged itself, is one of the actions that have been identified as contributing to the financial crisis in 2008. The Fed's intervention set a precedent for future bailouts of companies considered "too big to fail" and created a moral hazard, where financial institutions became more willing to take on excessive risk, assuming that the government would bail them out if they ran into trouble.

Two Actions by the Fed During Alan Greenspan's Term as Chairman