The moral hazard is already in place. See SVB's stock price in the last few years. The signal is clear to banking execs: take on risk, show growth metrics, and

The moral hazard is already in place. See SVB's stock price in the last few years. The signal is clear to banking execs: take on risk, show growth metrics, and the stock market will reward you. If your salary is tied to stock price, and whatever risky behavior you adopt won't show up for years, you have no real incentive to play nice. Banking execs are not going to stick around at the same bank forever. Do a 3 year tenure, pump up the stock, get paid, and gtfo with someone else left holding the bag.