Eh. It allowed banks to have in house investment banks. They still needed to have walls that dealt with conflicts of interest between the two. Whether the walls

Eh. It allowed banks to have in house investment banks. They still needed to have walls that dealt with conflicts of interest between the two. Whether the walls work all the time can be disputed. But you seem to have offered no substantial link to the existence of MBS securities and the repeal of Glass-Steagall. so your conclusion, that arbitrary deregulation, lead to the existence of MBS securities should be even more disputed. MBS are probably more clearly linked to the complete takeover of the mortgage market by the government. if you turn debt into a commodity you can divide it up however you want. and you turn debt into a commodity by guaranteeing it.