In a potentially risky play for survival, the two largest remaining investment banks, Goldman Sachs Group (NYSE: GS) and Morgan Stanley (NYSE: MS), moved to change their status to bank holding companies. This switch will allow the companies to create commercial banks that can take deposits, and potentially save them from a fate similar to those of the many failed institutions of the past several weeks. In a unanimous decision, the Fed’s board of governors approved the requests late on Sunday. Like many of the present changes happening on Wall Street, the move will subject the banks to direct regulation by the U.S. Federal Reserve.
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