Banks did not "do" the sub-prime catastrophe. Before the feds got involved in mortgage lending, the only way you could get a mortgage was with 20% down, and there was NO SUCH THING as a sub-prime mortgage.* That's *why* the sub-prime market is improperly regulated -- it is a relatively new market created by legislative fiat that the imbeciles in DC were unable to anticipate (or worse -- I suspect they used the inevitable creation of this market as a way to funnel cash to themselves/their cronies). It sucked if you didn't have the 20% saved up, but defaults were few and far between. After all, the whole purpose of a substantial down payment was to make sure you had enough skin in the game that you wouldn't overextend yourself.
Capitalism by itself works. Capitalism with trolls working the system to amass power to themselves does not work -- as it isn't capitalism. Crony capitalism isn't a form of capitalism at all. Don't get me wrong as to political leanings here -- we have had a lot of crony capitalists on both sides of the aisle in the US -- Lincoln, for example, was a master at it, and I am no fan of the Jeffrey Immelt-style of cronies -- but they are just a conduit for cash created by the government's oppressive legislation -- put them in jail, and the politicians will find other conduits. Just look up the largely unreported NOAA slush fund scam for a textbook example of "oppress someone, offer relief if you pay someone off, profit" scheme that rewards huge businesses and punishes smaller ones that don't understand that in DC, you have to pay to play.
Like any legislation that creates more problems far worse than the original, the politicians are at the place where they blame someone else for the problems they created. Next will be proposed legislation to "punish" the scapegoats, creating more problems that they can run for election on, and collect "donations" in order to give businesses a pass on enforcement a la China. Lather, rinse, repeat. In one paragraph, you repeated the main two lies used to pass the blame on and obfuscate the true source of the problem.
I'd call politicians parasites that afflict the people they purport to serve, but that's insulting to parasites anywhere. Ticks are mere pikers in comparison -- they just suck your blood until you die. These creeps suck your blood, blame you for the poor quality of blood due to your anaemia, bill you, your estate, and your descendants for the cost of their sucking their blood, any medical treatment, and burial expenses, and use your medical condition to justify latching on to any other source of blood handy.
My advice to you, young padawan, is to not give so much credence to people that say they are trying to "help" or "inform" you. Then you won't be "controlled".
* -- in fact, there is no such government interference in business real estate loans, which is why you do not hear of a sub-prime business real estate sub-prime market -- even though you can make the argument that since 90%+ of business startups fail, there should be a lot more sub-prime business real estate mortgages. If your business wants a mortgage, they still have to put 20% down or pass fairly stringent financial tests that would not be politically palatable in the heavily demogogued "buy a house for 0% down-no income or assets needed to apply" home mortgage market.
There never will be such legislation, as businesses are the scapegoats here, and nobody in politics loves businesses -- they only want their cash -- and creating oppression in order to create a highly profitable (to them) moral hazard is the way that Washington DC does business these days.