Federal Reserve changes status of Goldman Sachs and Morgan Stanley to bank holding companies

[antigop]

http://talkingpointsmemo.com/news/2008/09/last_major_investment_banks_ch.php

The Federal Reserve said Sunday it had granted a request by the country's last two major investment banks — Goldman Sachs and Morgan Stanley — to change their status to bank holding companies.

The Fed announced that it had approved the request of the two investment banks. The change in status will allow them to create commercial banks that will be able to take deposits, bolstering the resources of both institutions.

The change continued the biggest restructuring on Wall Street since the Great Depression.

[OhioChick]

1. K&R

:kick:

[liberalmuse]

2. How conveeeen-ient.

Goldman Sachs is doing remarkably well with it's former CFO being Secretary of Treasury and all. Halliburton, too.

[TexasObserver]

3. Yeah, they're going broke, so let's allow them to open some banks!!

Let these bad apples drop. Let the gravity of their bad decisions force them out of the market and into liquidation. The world will go on.

[Autumn]

4. Great. When do

we get to start bailing them out?

[daleo]

5. Who would be crazy enough to deposit money with them?

On the surface, it seems absurd. But there is probably some scam element to this.

[slipslidingaway]

6. K&R thanks n/t