Part of what Glass-Steagall prevented was banks from dealing/investing/underwriting in non-governmental securities or affiliating with those who do[1]. Seems t

Part of what Glass-Steagall prevented was banks from dealing/investing/underwriting in non-governmental securities or affiliating with those who do[1]. Seems to me that this would have gone a long way to preventing a lot of the insane repackaging of the toxic garbage alongside the more reasonable debt. Am I incorrect in believing that the securitization of mortgage debt and related instruments like default swaps and other derivatives could not have occurred with that firewall in place? Granted, there were still the problems that Fannie Mae and Freddie Mac created (not from their initial purpose, but rather what they morphed into) but it seems the problem would have remained much more contained, more obvious earlier, and with less leverage. [1] https://en.wikipedia.org/wiki/Glass-Steagall_legislation https://en.wikipedia.org/wiki/Glass-Steagall_legislation