1) He skirted the legal authorities of the Fed outlined in the 1913 Act. Even Volker has pointed this out.
2). He gave away without any compensation the most valuable perquisite of Fed membership - access to lender of last resort facilities - to all of the investment banks, who are at the center of the credit crisis.
3) In so doing, he rewarded them for their business model which allows 30x capital on the balance sheet, versus 10x capital for commercial banks. This in turn sanctioned the enormous bonuses Wall Street has been extracting from the economy.
4) He has traded away 60% of the Fed's assets for collateral that is already impaired and which may become worthless.
5) None of this was done with any known reference to Congress, and he even failed to get the minimum 5 member vote required from the Fed board.
6) He has ignored inflation in the economy, preferring to concentrate on useless core inflation data and questionable CPI data. He is closely tied to Greenspan's practice of ignoring asset bubbles. Only until this week has he said anything about supporting the dollar.

There is a mini revolt going on among some of his governors and he is being publicly challenged, something unheard of in the Greenspan or Volcker days. His position looks very weak. Only Wall Street and the Treasury are behind him - powerful supporters to be sure - but useless if the economy weakens much further.