The Fed bailed them out because the Fed, The U.S. Government, and U.S. banks promised everyone who bought the toxic mortgage securities that they were sound and were backed by the full faith and credit of the United States.
We sold them a load of crap and almost tanked many more economies beyond our own. That is a fact.
That is why the Fed tried to keep their bailouts secret. They claimed it was to prevent runs on foreign banks but most of all it’s because the same clowns in charge now were in charge then and they sold them beachfront property in Nevada.