The Wall Street investment banking model today seems confined to the pages of history after the two remaining pillars of the prototype Goldman Sachs and Morgan Stanley received approval to become banks.
After just over 75 years separated from deposit-taking lenders, the Federal Reserve last night gave the green light for Goldman and Morgan to become bank holding companies. The move capped a week of turmoil for investment banks, following Lehman Brothers’ collapse and Merrill Lynch’s takeover by Bank of America. While Goldman and Morgan currently have deposit taking offshoots, both took the option to be Federal Reserve regulated to enable flexibility as the financial marketplace undergoes rapid changes. Goldman Sachs chairman and CEO Lloyd Blankfein says the firm will be regarded a...
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