Did the Fed Exercise Its Authority as a Lender of Last Resort?

There was no deposit insurance, so people were running to their banks and saying, we won our money. The fed didn't exercise its authority as a lender of last resort. Soits it's a bubble. And the fed was so worried about doing anything of lowering rates, because they were afraid of piercing that bubble. But they had helped create it, and by allowing it to go on, they allowed it to grow bigger. After all, there is same element in the readjustment of our financial system more important than currency, more important than gold, and that is the confidence of the people themselves.