Goldman Sachs and Morgan Stanley have changed their status to become bank holding companies after concluding that there is no future in remaining investment bank. The investors believe that this model has now broken. This would allow the last two major investment banks to take deposits from investors.
The Federal Reserve Bank has given approval to this change and this would now enable Goldman Sachs and Morgan Stanley to raise more funds by opening commercial banks. It will also enable them to get support from Federal Reserve in future.
This is a major development and it is said that it would change Wall Street from what it was known.
Goldman Sachs and Morgan Stanley have changed their status to become bank holding companies after concluding that there is no future in remaining investment bank. The investors believe that this model has now broken. This would allow the last two major investment banks to take deposits from investors.
The Federal Reserve Bank has given approval to this change and this would now enable Goldman Sachs and Morgan Stanley to raise more funds by opening commercial banks. It will also enable them to get support from Federal Reserve in future.
This is a major development and it is said that it would change Wall Street from what it was known.
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