Here is an insightful statement regarding what the Federal Reserve will and will not do to reign in on banking institutions:
Senate banking committee goes after regulators – Mar. 22, 2007: “Cole said that the Fed has taken just three formal and three informal actions against substandard lenders during the past five years, but he added that it does engage in other actions to attempt to bring lenders in compliance with best business practices. A lot of it is in educational and outreach programs.”