Regarding the financial crisis, the president assigns blame to the lack of regulation. The facts are banks got into trouble making loans on real estate assigned inflated values to borrowers who could not repay. Loans were bundled into bonds and sold to investors. When not enough unwitting fools bought bonds, the big Wall Street banks put unsold securities into offshore special investment vehicles whose potential losses were not supposed to be a claim on bank capital. Other firms, like AIG, sold insurance against potential losses on bonds without sufficient assets to back up that protection.