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FORBES: There is zero evidence this change unleashed the financial crisis. If you tally the institutions that ran into severe problems in 2008-09,
the list includes
Bear Stearns,
Lehman Brothers,
AIG,
Merrill Lynch, and
Fannie Mae and
Freddie Mac,
none of which would have come under Glass-Steagall’s restrictions. Even President Obama has recently acknowledged that “there is not evidence that having Glass-Steagall in place would somehow change the dynamic.”
PVC: FALSE! ALL OF THE ABOVE MENTIONED BANKS WERE TIED INEXTRICABLY TO THE U.S. MORTGAGE MARKET ALL OF WHICH WERE REGULATED BY THE GLASS STEAGALL ACT BY SEPARATING COMMERCIAL FROM INVESTMENT!
financial disaster!