The Glass-Steagall repeal actually helped resolve the crisis: it allowed Bank of America to buy Merrill Lynch and JPMorgan Chase to buy Bear Stearns, and let Goldman Sachs and Morgan Stanley become bank holding companies in September 2008, gaining depository funding and Fed access—each stabilizing the system—so the deregulation had zero effect on the risks taken but a positive effect on resolution.

causalpending

Speaker

Charles Calomiris

Evidence Quote

in September of 2008 when things started eating up for Goldman Sachs and Morgan Stanley that they could get into bank holding companies become bank holding companies which gave them immediate access to depository funding

Source

Charles Calomiris on the Financial Crisis 10/26/2009EconTalk
Created: 6/15/2026, 9:20:15 AM

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