Banks lobbied successfully to repeal Depression-era regulatory separation

Evidence

These irresponsible mortgage practices occurred in the context of large-scale bank deregulation. The Glass-Steagall Act, enacted in 1933, had prohibited commercial banks from engaging in the securities and investment sectors. In 1999, the banks succeeded in having Glass-Steagall repealed with the help of Alan Greenspan, the chairman the Federal Reserve Board. — Albert Bandura, Moral Disengagement, 1493

Categorization

• XREF: Regulatory repeal and ‘malign neglect’ connect to general dynamics of how institutions enable harm — parallel to Milgrom/Shapiro reading on how deregulated institutions function.
• corroborated: 2 independent passages support this claim — Albert Bandura, Moral Disengagement: How People Do Harm…, 1493