Banks are in trouble and it is their own fault. Banks have been lending to the wrong borrower for decades. Since 1980s loans to the businesses have contracted, and loans to the consumer has expanded. Business loans are used to create value. They contribute more to the real economy. The likely hood that they will be paid back is higher. But consumer loans do not provide value. Consumers consume. They do not produce. Today, banks are 98% invested in consumer loans. The collateral for consumer loans depreciate in time. They do not create value. This is the cause of bank troubles today. 50 years ago banks would be invested in pristine US government bonds. If that was the case now, a housing market crash would not effect the banks much. Alas, it is too late.

Now, about making the banks lend to the business again... It is hard for the FED to turn the boat around because banks see this as what it is: A deflationary crash! FED does not control the market:

http://www.kondratieffwavecycle.com/economy/the-federal-reserve-does-not-control-the-market/

1. FED makes credit available
2. Banks do not want to lend because they don't think they will get their money back.
3. Borrowers do not want to borrow because they don't think they can pay it back.

So, what is the problem? Let them not lend, not borrow, no? NO. Because when we borrow, banks create money out of thin air and this money inflates the money supply. Without borrowing, deflation happens:

http://www.kondratieffwavecycle.com/economy/deflationary-crash/

Whatever you do, stay away from debt, junk bonds, stocks. All of these investments will crash along with the money supply. Bernanke is printing money, but debt is deflating at the same time. The money to pay total debt does not exist. This is why inflation is not happening even though Bernanke is printing money. Printed money is 2 trillion. Debt is to the tune of 50 to 300 trillion depending on how you look at it.