The mortgage and thrift industry was never “de-regulated” in the sense that there was no oversight - the oversight was just of a different variety than “good and prudent” review of the compliance with regulation. Instead, there was a directive sent down, with the benediction of certain Members of Congress and the Senate, DEMANDING the underwriting be loosened so person who NEVER could have qualified for a loan, could then be accepted.
There was PLENTY or regulation and oversight - just not the right kind.
Methinks blaming the home buyer defaults for the collapse of the world’s banking system is a bridge too far. The problem seems to be the capacity of the bankers along the upline to repackage debts as assets leveraging a lot more creative financing to kick further down the road.
Like an old story of three farmers and one horse. It seems they took turns in selling the horse to each other at increasing amounts and they were all getting rich on the profits. Unfortunately the horse died.