walt
09-21-2008, 09:47 PM
Goldman, Morgan Scrap Wall Street Model,
Become Banks in Bid to Ride Out Crisis
DOWNRIGHT SCARY....
http://online.wsj.com/article_email/SB122202739111460721-lMyQjAxMDI4MjIyMTAyMjE3Wj.html
The Federal Reserve, in an attempt to prevent the crisis on Wall Street from infecting its two premier institutions, took the extraordinary measure on Sunday night of agreeing to convert investment banks Morgan Stanley and Goldman Sachs Group Inc. into traditional bank holding companies.
With the move, Wall Street as it has long been known -- a coterie of independent brokerage firms that buy and sell securities, advise clients and stay less regulated than that of old-fashioned banks that take deposits and lend money -- will cease to exist
Now, the parent companies of almost all major U.S. financial institutions will be overseen by the Federal Reserve. Sunday night's development also further expedites the ascendancy of the Fed as universal supervisor, as it now has even more direct authority over nearly all financial companies in the country.
Become Banks in Bid to Ride Out Crisis
DOWNRIGHT SCARY....
http://online.wsj.com/article_email/SB122202739111460721-lMyQjAxMDI4MjIyMTAyMjE3Wj.html
The Federal Reserve, in an attempt to prevent the crisis on Wall Street from infecting its two premier institutions, took the extraordinary measure on Sunday night of agreeing to convert investment banks Morgan Stanley and Goldman Sachs Group Inc. into traditional bank holding companies.
With the move, Wall Street as it has long been known -- a coterie of independent brokerage firms that buy and sell securities, advise clients and stay less regulated than that of old-fashioned banks that take deposits and lend money -- will cease to exist
Now, the parent companies of almost all major U.S. financial institutions will be overseen by the Federal Reserve. Sunday night's development also further expedites the ascendancy of the Fed as universal supervisor, as it now has even more direct authority over nearly all financial companies in the country.