The issue is that all banks were shitty and risky and credit unions were extremely strict. You throw some Reagan era trickle down policy into the mix, deregulate banks, and artificially raise the price of property over the course of 20 years to the point where people have to go through banks because the credit unions realize the risk of giving out loans in a shaky market and bam! That's basically what happened. And the banks went bankrupt and we had the option of a) letting the banks collapse and forcing the American population into such a strict loan situation that people would have killed the real estate market or b) bailing them out to relieve the stress on the American public that would otherwise no longer be able to sell their property or buy new property. We picked b. The issue is, we picked b without imposing regulations that restricted how they used their free tax money.
That's why we need to impose rules upon the banking system. Capitalism is broken and encourages wealth to sharply rise to the top instead of having a more balanced distribution. When the people with the wealth are also the people making the rules, it's time to reboot the system. Unfortunately a reboot isn't an option, so imposing rules until the situation naturally takes care of itself is the only reasonable fix.
I'm all about small government and giving rights back to states, but we've got to clean house before redistributing power.