Actually the Fed didn't technically bail out BSC. JPMorgan bought BSC and the Fed facilitated the deal by giving JPMorgan 29bil in exchange for 30bil in assets JPMorgan got from buying BSC. Had BSC been "bailed out" they would not now be a subsidiary of JPMorgan.
The Fed was directly responsible for the mal-investment bubbles that emerged from it's policies. If you don't want bubbles to keep popping, don't blame the guy with the pin - because you can be sure there will ALWAYS be guys waiting with pins - blame the guy who keeps making the bubbles
You misunderstood. I meant indirectly culpable for BSC probs. The FED created the bubble, but it was lack of regulation and complete idiocy in risk management that killed BSC. It was their own fault.