Putnid,

Very good response, though from what I have seen, the securitization of mortgages by traditional investment banks could have been accomplished without respect to Glass Steagall. The actual writing of the mortgages in the first instance might not have been done widely, though I know Allen & Co had real estate lending activities in the 1960's. I don't know specifically if Bear or Lehman originated some of those mortgages that got them in trouble, or simply bought them en masse from commercial banks and bundled them. I know that investment banks prior to repeal had ability to buy non- security assets and securitize them, because Morgan Guaranty sold such assets to Morgan stanley, et.al. for this purpose, though surely not on the scale that occurred later.

jz