US banks make shock status switch

[AlphaCentauri]

Source: BBC

The last two major investment banks in the US have changed their status to become bank holding companies, allowing them to take deposits from investors.

The changes should enable Goldman Sachs and Morgan Stanley to raise more funds by opening commercial banks.

The move - part of a huge restructuring effort on Wall Street - will also give them access to Federal Reserve support.

The US government has announced a $700bn (£382bn) package to tackle the worst financial crisis for decades.

Congress is considering the plan, drawn up by Treasury Secretary Henry Paulson, which would set up a fund to buy back much of the bad debt held by financial institutions.

Mr Paulson has urged other countries to follow the American example in dealing with the international financial crisis.



Read more: http://news.bbc.co.uk/2/hi/business/7628578.stm

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WOW! everybody is picking up their peace of the pie, except the tax payers

[nadinbrzezinski]

1. We need so much re-regulation it is not even funny

[Demobrat]

2. So I wonder who will be rushing to to open accounts and make deposits

at these brand, shiny new banks. I know it won't be me.

[billyoc]

3. Hank Paulson.

[Indenturedebtor]

5. Actually it will be you and your children's children

All of us have the honor of being the first customers! Yippee :(

[Miss Chybil]

4. "...buy back...?"

Did we "sell" it to them in the first place? Amazing choice of words.

[ixion]

6. the taxpayers are the pie

or, rather, are supplying the pies for the pie-eating orgy that is taking place.

[AlphaCentauri]

7. The money of the taxpayer n/t