Can someone explain the finacial crisis?

Can someone explain me how can banks benefit from crisis with simple words?

• I really dont understand. You have the banks , who loan money to the people. Now you have crisis, how will it make the banks get more money since they will stop making more loans ? Crisis would also means that shares go down... or not ? can someone explain it with very simple words to me please , thanks in advance

• Answer:

  Yes, banks loan people money. In a crisis like the one we had in 2008, they should fail. So why didnt they fail? Why did they "benefit", as you said? Because of a central bank that has the power to print money, called the Federal Reserve. The government saved the banks from their own bad loans. Im sure you've heard of TARP. That stands for the Troubled Asset Relief Program. The government bought all that bad debt. Two banks, Lehman Brothers & Bear Stearns did fail. However, the government saved the rest of the big banks.