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Goldman Sachs, Morgan Stanley Seek Fresh Start as Holding Companies
Goldman Sachs Group Inc. (GS) and Morgan Stanley (MS), Wall Street’s last remaining investment banks, are converting to holding companies now that the collapse of The Bear Stearns Cos. Inc. and Lehman Bros. Holdings Inc. (OTC: LEHMQ) have drained clients and investors of any remaining confidence in the companies’ business models.
Both Goldman and Morgan received approval for the transition from the U.S. Federal Reserve Sunday night. The two companies can now offer Federal Deposit Insurance Corp. deposit insurance and gain access to cheaper more stable sources of funding via the Federal Reserve Bank Discount Window and customer deposits.
The trade…
23Sep2008 | Money Morning | Comments Off | Continued
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