It was awful. They could suddenly write mortgages. They lost billions!
Are you a complete idiot? How many residential mortgages did Goldman Sachs write before 98? They could suddenly gamble with (invest in riskier instruments for greater profit) your FDIC insured deposit money. You know, like the Savings and Loan collapse.
Here is a thought to chew on. Profit = risk. How profitable should the financial sector that underpins our economy and allows it to operate as one with freely moving capital be?
Are you a complete idiot? Goldman didn't gamble with FDIC deposits. Goldman doesn't have retail bank deposits. Get a clue already.
Retail banks didn't need a repeal of Glass Steagall to write mortgages.
Retail banks lost money on mortgages. They already had an FDIC guarantee.