I have been saying it throughout this crisis that the repeal of Glass-Steagall, the Gramm-Leach-Bliley Act, passed in 1998 was not responsible for the troubles in housing or the banks. In fact, we see that the strongest financial institutions are those that follow a universal banking model.
Two links to Marginal Revolution
Glass Steagall: The Real History
Did the Gramm-Leach-Bliley Act cause the housing bubble?
The Great Depression brought about much financial regulation. Let us not make the mistake of hastily enacting new regulations just to be doing something. Remember the windfall profits taxes on oil companies in 1980, Nixon's wage and price controls, industry-wide cartels of the 1930s... You could fill volumes with examples of bad or ineffectual regulations that followed because people wanted to do something.
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