Bloomberg: Fed Not to Blame for Financial Crisis

Mayor Bloomberg says President Obama is taking on an issue that other administrations have ducked: that of reforming and regulating the financial industry. While others, including former governor and so-called Wall Street Sheriff, Eliot Spitzer, have blamed the Federal Reserve for not doing enough, the mayor defended the Fed, saying its hands were tied.

BLOOMBERG: I suspect had the Fed tightened credit in the good old days, they would have have gotten run out of town. Nobody in Congress, or state government, or city government, wanted to stop the expansion that was going on, that we were all participating in and enjoying.

On the CBS Early Show today, Spitzer said in the run-up to the financial crisis, federal regulators like the Fed and the Securities and Exchange Commission failed to use the powers they already had.