That looks mostly like personal attacks and alot of anger, but very meager on facts - exactly what you're accusing me of. Now, if you would please re-read what I actually posted instead of attacking a strawman of what you think I believe.
For example, you say that I believe that
"therefore the banks can do NO WRONG.". Yet if you had actually read the post you quoted, I said that they participated in Fraud.
Anyway, FHA's "Best Practices Initiative" was intended to reduce underwriting standards to increase lending to low income borrowers. And for the record, Government played a huge role in issuing high-risk mortgages. However, the Subprime mortgages and high-risk mortgages were not the biggest issue with the financial crisis. So government participation in the fairly small subprime mortgage market cannot be attributed as the big reason for the whole crisis and bubble.
Here's a distribution of high-risk loans (not the exact same table I'm using, but I can't copy it as the material is not publicly accessible).
The whole point was to show that Glass-Steagal had nothing to do with the crisis. The practice of having commercial and investment banking under one umbrella was common everywhere else in the world, and the repeal of one provision of the act did not remove the rest of the act's regulations. Yet this repeal is considered by many ill-informed people as the biggest reason for the crisis. They say that "deregulation" caused it, yet this is the only signficiant deregulation that took place.