Bank CEO operated in an environment carved out by government regulations and implicit rules. Unfortunately now the government is getting itself more involved and preventing the markets from functioning.
From Mr. Practical.
The government isn't the solution since they're the enabler. They'll enable until the currency is literally destroyed. A former Chinese bureaucrat already stated that the US needs to guarantee its debt. That's code for you now work for us.
That will happen unless we just stop and let the markets correct the problem. There's too much debt, and creating more debt is no longer an option. This is sad, but economics is like physics: You can’t expect to jump out of a window and go up.
The 2 most important were excess government spending and the continued backing of the GSEs. Very simply, banks would probably have not been able to keep lending without Fannie Mae (FNM) and Freddie Mac (FRE) guaranteeing and buying up debt from banks, which encouraged them into moral hazard: lending to people that, in even a modest downturn, could never pay back their loans.