> Glass-Steagall has nothing to do with the secondary market for mortgages. The repeal of Glass-Stegall let them flip loans to the market while their funding w

> Glass-Steagall has nothing to do with the secondary market for mortgages. The repeal of Glass-Stegall let them flip loans to the market while their funding was FDIC insured since they were gambling with depositors money, something they didn't have access to before that. That makes flipping more attractive because you're insured by the FEDS. The net capital rule change amplified this ability making handing them out like candy attractive; what good is a ton of credit if you don't leverage the shit out of for all you can. > All the modified NCR rule would have done is allowed banks to hand out loans like candy and not flip them. Which is what I said; I wasn't implying that the flipping was related to the net capital rule.