What Does it Mean if Goldman and Morgan Become Bank Holding Companies?

September 21, 2008

On Sunday evening, the Federal Reserve announced that Goldman Sachs and Morgan Stanley have become bank holding companies. Up until this weekend, they were the last 2 independent investment banks standing.

For Goldman and Morgan, this means that they come under a new regulation by the Federal Reserve. This will allow them to tap the discount window, benefit from some accounting changes and start looking for bargain retail banks.

In the minutes after this announcement, the most comprehensive article that I have found on this has been in the NYTimes

Goldman and Morgan to Become Full Fledged Banks (NYTimes)

Posted in Federal Reserve, Goldman Sachs, bank holding companies, morgan stanley