Not true at all. That bubble happened precisely because of regulation. Banks were practically forced to lower lending standards by Freddie and Fannie, not to mention the FED key interest rate affected mortgage rates to get artificially low enabling many to borrow who couldn't afford it. All Wall Street did was feed upon this circle and meet a demand that was created by the government and no one else. It's called moral hazard, look it up.
This is completely and utterly bass-ackwards. The only influence Freddie and Fannie had was that they wouldn't buy mortgages on the secondary market unless they met minimum underwriting standards. The pressure was actually in the opposite direction - the banks pressured Freddie and Fannie to lower their lending standard so the banks could make more money on risky subprime loans.
However that ignores the bigger picture, namely the amazing and astounding history of Freddie and Fannie from the 70s and the knock on effects. My oversimplified understanding of it is of the way in which those government-set-up institutions got used to force lenders to lend irresponsibly to fulfill political agendas.
I've heard this said a lot, but again the exact opposite is true. For instance have you looked at what the much-criticised Community Reinvestment Act actually did? It banned the practice of "redlining" - banks were no longer allowed to refuse mortgages to people who otherwise met their lending criteria just because they were buying homes in poor, largely black urban areas. That's it. It didn't require them to lend money to people who couldn't afford it or any of the other things blamed on it; that was a purely profit-motivated commercial decision by the bank.
Actually, things would probably have been worse without the CRA. Amongst other shady things, banks had been pushing black homebuyers into expensive subprime mortgages they couldn't afford
even though they were eligible for a much cheaper, affordable prime mortgage on the same house because those mortgages were more profitable for the banks in the short term. Without the CRA, the banks could and almost certainly would have refused to give prime mortgages to those buyers, forcing them to rely on the subprime mortgages that caused the problems in the first place.