Would ring fencing under Glass Steagall have prevented the 2008 MBS collapse? (Premium)
Last month the Washington Post looked into the contention of the Sanders campaign that Glass Steagall would have prevented commercial banks from crossing the line into the shadow banking realm, and potentially prevented the 2008 economic crisis. The Post article makes a strong case that not only is this not true, but the protective provisions of Glass Steagall were fundamentally irrelevant. What’s the story here?