lending out at rates that were designed to nearly guarantee profitable returns for those companies. it was, in essence, an exceptionally huge windfall profit th

lending out at rates that were designed to nearly guarantee profitable returns for those companies. it was, in essence, an exceptionally huge windfall profit that they "earned" by nearly going bankrupt and taking the whole global finance system to the brink with them. it was ransom money, in other words. you're right that the practical concerns about trying to address the borrowers were significant and discouraged the Fed from even trying it (and congress wouldn't go near it either). however, that there is now a long-simmering batch of political backlash and ill-will should surprise nobody. Bernanke broke the moral hazard limit and now we're suffering the consequences in our national polity and discourse.