FED is not bailing out banks.
Capital markets are well functioning and banks were trying to cover a massive reserve drain of roughly 170 billions in a few days (equivalent to the while bitcoin capitalisation, btw) because of a large fiscal payment date is approaching for many corporate in the US.
Overnight rates were going up too fast, too quickly, so the FED downplayed the move with one of his tool.
I can go very technical on this if you want, but believe me not to read too much into that.