Comment: Glass Steagall is half the story

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Glass Steagall is half the story

Glass Steagall removed the firewall between commercial banks and high risk investment banks. The legislation called Gramm-Leach-Bliley (GLB) repealed Glass Steagall in 1999. Here's a short article on GLB and Glass Steagall.

A year later the Commodity Futures Modernization Act (CFMA) deregulated derivatives and the combination of GLB and CFMA caused the current mess. A link explaining the CFMA is in the original post.

Also, in 2004, the SEC essentially removed all capital requirements for large financial institutions.

For more info: (Rand Paul: One person can make a difference) (Fast and Furious hearing)