PHILADELPHIA — A day after Federal Reserve Board Chairman Ben Bernanke defended financial market interventions as necessary to avoid a deeper crisis, another central bank official said the actions had worsened problems posed by large companies.

"Rather than limiting moral hazard and the 'too-big-to-fail' problem, we have made them worse during the crisis," Federal Reserve Bank of Philadelphia President Charles Plosser said Friday. "In trying to stabilize the financial system, we have led creditors of large financial institutions to expect that the government will protect them from losses, which in turn means they need not monitor risk-taking by these firms."

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