However, in 1999, parts of the Glass-Steagall legislation, which had been adopted in 1933, were repealed, permitting financial institutions to commingle their commercial (risk-averse) and proprietary trading (risk-taking) operations. Congress had passed legislation encouraging financing for affordable housing. The preconditioning for the financial crisis were complex and multi-causal. Financial institutions worldwide suffered severe damage, reaching a climax with the bankruptcy of Lehman Brothers on September 15, 2008, and a subsequent international banking crisis. Mortgage-backed securities (MBS) tied to American real estate, as well as a vast web of derivatives linked to those MBS, collapsed in value. Predatory lending targeting low-income homebuyers, excessive risk-taking by global financial institutions, and the bursting of the United States housing bubble culminated in a " perfect storm". It was the most serious financial crisis since the Great Depression (1929). The 2007–2008 financial crisis, or Global Financial Crisis ( GFC), was a severe worldwide economic crisis that occurred in the early 21st century.
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