Monday, September 22, 2008
Goldman and Morgan Stanley as BHCs
I haven't seen the details, only the news flashes, but I interpret Goldman and Morgan Stanley's conversions to bank holding companies (BHCs) as a signal of their need for funds to continue, so that they don't meet the fate of Lehman. Conversion to BHCs opens up Fed facilities to them, as well as bringing them into the bank regulatory scheme. Now let's see what the regulators do with them!