Goldman and Morgan applied to become bank holding companies.
Of course now that Goldman is to become regulated by Fed, there isn't any conflict that Henry Paulson, former president of Goldman Sachs, also heads the treasury...
Well, I guess independent Investment banking is dead in the USA. So much for how critical it was to keep these entities around to spur investment. I suspect once the taxpayer pays Morgans and Goldman's debt, they will ask to revert back to an investment bank. Wow in 7 days the last 4 big investment banks have either been bailed out or changed their status as investment banks. Wonder if other companies can apply to become a bank holding company to get a piece of the bailout action. I think I'll email what remains of Bennigans.
Goldman and Morgan face challenges for profit, since this change will result in leverage reduced to 12 instead of 30-40.
UPDATE: Mitsubishi to buy stake of Morgan Stanley