The main thing that G-L-B did that affected what has happened is that it made explicit that swap agreements were to be largely exempt from securities regulation. That led to a lack of transparency that has exacerbated the situation, as it has made it likelier for the collapse of one financial institution to weaken others because of uncertainty over exposure to swaps that the failed institution was involved in.
But couldn't one argue that, by allowing commercial and investment banks to merge, Gramm-Leach-Bliley actually helped taxpayers in this crisis by allowing commercial banks to buy failing investment banks instead of the government to bail them out.
