For general discussion and debate. Possible talking point: Say goodbye to the securities industry!
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.
Wow! So, for all intents and purposes, the only financial institutions left are banks and insurance companies. What does this mean, and how do you feel about it?