I see that he is shocked that nobody at the Fed was paying attention to the crisis that banks holding bonds that are losing lots of value would have on the system. I can imagine a scenario where they knew, and its part of the plan. If everyone knows the system will collapse, the only solution is to bring the entire banking system under the umbrella of the Fed. Its the only way to control the implosion. Taking down banks under the cover of protecting consumers seems almost smart.