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No. The whole point of repealing Glass Steagall was to allow financial institutions to engage in the risky (and initially profitable) practices depicted in the Big Short. This, after decades of lobbying by the banks. It may not be a coincidence that the two sets of events happened over 70 years apart, after everyone who had a personal recollection of ...


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Ummm..no. As a bit of background, Glass Steagall was passed in the wake of the Great Depression to prevent commercial banks, or entities affiliated with commercial banks, from speculating in securities. This was viewed as a cause for the financial bubble that kicked off the crash of 1929. Investigations found that banks were doing a lot of underwriting of ...


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It does depend on what you mean by "under Glass Steagall" as it was only partially in place in 2007-8. As the wikipedia page for the Glass-Steagall legislation mentions, the Glass-Steagall provisions were partially undone by the Gramm–Leach–Bliley Act also known as the Financial Services Modernization Act of 1999. This Act repealed two of the four ...



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