Morgan Stanley and Goldman Sachs will now be bank holding companies, allowing both investment banks to create commercial bank divisions that can raise much needed funds.
AP: Investors feared that the last remaining independent investment banks would not be able to survive in their current form….
In the surprise announcement late Sunday, the central bank said that to provide increase funding support to the two institutions during the transition period, they would be allowed to get short-term loans from the Federal Reserve Bank of New York against various types of collateral.
Business Insider Emails & Alerts
Site highlights each day to your inbox.