Big financial entities were not the problem, sub-prime mortgages were the problem. The FSMA Act was not responsible for that.
The quest for an all-encompassing "ownership society" led to the policies that have created the crisis. From dramatically low interest rates to ignoring the warnings about predatory lending to quashing state regulations that would have helped prevent such massive Wall Street investment in subprime loans, Bush and his allies built an economy on a house of cards that was bound to collapse.
"Home ownership is at an all-time high now in America. That’s fantastic news. Isn’t it wonderful to have somebody for the first time be able to say: welcome to my home; I’m glad you’re here at my piece of property." -- Geroge Bush, 2004
Of course, what the current crisis (rooted in subprime mortgages) proves is that promoting home ownership without regulatory safeguards is inherently risky. As economist Paul Krugman explained, “Borrowing to buy a home is like buying stocks on margin: if the market value of the house falls, the buyer can easily lose his or her entire stake.” And that’s just what happened.