- Kovacevich talks about the Fed requiring banks to take bailout funds. The Fed and the government needed this money to be loaned out to increase the money supply. By giving member banks more money, the Fed wanted them to loan it out to the public, which would create even more money. Kovacevich says the that regulators simply failed to do their jobs – no new regulations were needed. TARP was simply a coverup for regulators’ corruption and negligence. Financiers profited tremendously from the market collapse, a collapse that they knew was coming because they saw the enormous leverage and risk lenders were taking.