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At the most fundamental level, the financial collapse happened because market forces failed to discipline risk-taking by executives who lead banks and other financial firms. Under normal conditions, the fear of financial ruin is enough to make a company president cautious. But in our system, normal market discipline was suspended. Financial executives took on far more risk than they could handle. The factors that encouraged excessive risk-taking are worth restating, so we can put Glass-Steagall in perspective:
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