The Fed is the chief financier of American crony capitalism. That is why it was brought into being and why the political establishment so zealously guards it. So best to take with a big grain of salt what Ben Bernanke, chairman of Fed before and during the crash, Timothy Geithner, chairman of NY Fed then and later Treasury secretary, and Hank Paulson, Treasury Secretary before and during the Crash have to say in a recent NY Times op ed. Naturally they want more power for the Fed.
In their op ed, this crew takes no responsibility at all for bringing on the Crash, although Ben Bernanke’s monetary policies and stubborn adherence to disastrous regulatory moves such as “mark to market” banking rules were chiefly responsible for it happening when it did. Note also that during the Crash the Fed knowingly and willfully violated the Federal Reserve Act and then went back to Congress for approval after the fact, which they got. No wonder they want more power for the Fed and other regulators now.