From Yahoo! Finance: Last major investment banks change status.
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.
Gentlemen, a moment if you will. A minute of silence for the passing of the "investment bank" model.
This is not a positive if you will. Their leverage is curtailed; they will be able to acquire all less than marginal banks, and hence they will survive but you do realize that all "marginal" banks just got tossed under the bus, don't you?
Last year, there were 5 investment banks. Tomorrow 0.
It should be reasonably obvious that this is not a "positive" thing.
Subscribe to:
Post Comments (Atom)
No comments:
Post a Comment