The G-S repeal having to do with future crises is a nonsense theory which has been previously been covered in r/badeconomics: https://www.reddit.com/r/badeconom

The G-S repeal having to do with future crises is a nonsense theory which has been previously been covered in r/badeconomics: https://www.reddit.com/r/badeconomics/comments/5nx2mm/glassstegall_would_have_saved_us/ https://www.reddit.com/r/badeconomics/comments/5nx2mm/glasss... In short: Glass-Steagall was about separating commercial banks from investment banks. Of course, in 2008, pure investment banks largely failed. In any case, banks already naturally separated from diseconomies of scope. The reality is that the G-S repeal was a completely harmless symptom of a more harmful disease: general banking deregulation (and a push against new regulations) in the late 1990s and early 2000s (yes, it was bipartisan in both Clinton and Bush years).