The Glass-Steagall Partial-Repeal Did Not Cause the Financial Crisis

[jwirr]

23. Never said it caused the crash. It did allow many of us to lose OUR money in risky investments.

And because the investors were not insuring their own risks FDIC did not have enough money to cover the crash and we ended up bailing them out.

Risky investment was obviously the cause. I also wonder if banks would have been making risky housing loans if the money was their own money instead of OUR money.

Glass-Steagall allowed those of us who could not afford to gamble on Wall Street to have a safe haven for OUR money and OUR pensions.

It also allowed the investment bankers to use their own money as they wanted. But they were not covered by FDIC which worked to limit the risk they were willing to take. By removing Glass-Steagall the bankers were allowed to take huge risks with the combined money of both commercial and investment depositors insured by taxpayers.