Breaking: Goldman, Morgan to Become Bank Holding Companies

[Cheney Killed Bambi]

More insanity

In one of the biggest changes to Wall Street in decades, Goldman Sachs and Morgan Stanley, the last two independent investment banks, will become bank holding companies, the Federal Reserve said Sunday night.

The move fundamentally changes one of the mainstays of modern Wall Street. It heralds new regulations and supervisions of previously lightly regulated investment banks. It is also the latest signal by the Federal Reserve that it will not let Goldman or Morgan fail.

http://dealbook.blogs.nytimes.com/2008/09/21/goldman-morgan-to-become-bank-holding-companies/index.html?hp

[BrklynLiberal]

1. Sounds great for Goldman and Morgan, but what about the rest of the world?

[sad sally]

4. any benefits to Treasury Secretary?

when Paulson returns to his "protected" company next February, suppose he'll be able to reap any rewards from this new banking status for Goldman?

[Cheney Killed Bambi]

5. good question

[angstlessk]

2. does this mean BANKS are not longer central banks..but INVESTMENT FIRMS ARE CENTRAL BANKS NOW????

PERMANENTALY???? I am too much of a real person to understand this..although I was an actuarial researcher in a past life!!!

[CountAllVotes]

3. so JPMorgan now owns Bear Stearns and BoA bought Merrill ....

>> Now, Goldman and Morgan Stanley, which have been the subject of merger speculation in recent weeks, can become direct competitors to larger firms like Citigroup, JPMorgan Chase and Bank of America. Those firms combine investment-banking operations with the larger capital cushions that come with retail deposits, giving them a stability that pure investment banks lack.

JPMorgan acquired Bear Stearns this spring in a fire sale brokered by the federal government, while Bank of America has agreed to buy Merrill Lynch for $50 billion.

******

Spin baby spin spin spin. It is all those same damn rotten dead loser loans money. :wtf:

:kick:

[dixiegrrrrl]

6. Why Bear Sterns went down seems to be a mystery

but there are hints that it was sabotage, aided and abetted by Paulson.

A wonderfully detailed and quiet entertaining article can be found here:

http://ftrsupplemental.blogspot.com/2008/08/bringing-down-bear-stearns.html

I found it fascinating, especially in light of events of this week.