Goldman, Morgan to Become Bank Holding Companies

QUESTINY · 09-22-2008, 02:44 AM

Goldman, Morgan to Become Bank Holding Companies

In one of the biggest changes to Wall Street in decades, Goldman Sachs and Morgan Stanley, the last two independent investment banks, will become bank holding companies, the Federal Reserve said Sunday night.

The move fundamentally changes one of the mainstays of modern Wall Street. It heralds new regulations and supervisions of previously lightly regulated investment banks.

The move comes after the bankruptcy of Lehman Brothers and the near-collapses of Bear Stearns and Merrill Lynch.

Being a bank holding company would give Morgan and Goldman access to the discount window of the Federal Reserve. While they have had access to Fed lending facilities in recent months, regulators had planned to take away discount window access in January.

The regulation by the Federal Reserve brings a host of accounting rule changes that should benefit the two banks in the current environment.

In return, they will submit themselves to greater regulation, including limits on the amount of leverage they can take on.

http://dealbook.blogs.nytimes.com/20...ing-companies/

QUESTINY · 09-22-2008, 02:44 AM

Sorry. I have been gone a while but here is what the world has come to.

QUESTINY · 09-22-2008, 02:48 AM

I think that was a bluff to force the issue. Now GS and MS can acquire FDIC failing banks ad naseum. I look for the 10% depository rule to be suspended also in the weeks to come.

WM will probably be acquired by GS this week and WB by MS.

Forced mergers via FDIC action will be the rule of the day. That way they do not have to be listed as "failures" and the acquisition costs now shift from shareholder liability to taxpayer liability.

Zarathustra · 09-22-2008, 02:50 AM

Exactly, and now the two companies will have full access to the FED emergency lending fund. Fascism in it's truest definition is roaring to life.

Zarathustra · 09-22-2008, 02:54 AM

This was last week, I wonder what this guy thinks now?

http://www.cnbc.com/id/26656750

The end result of the global economic slowdown may be the U.S. announcing national bankruptcy as the government cannot afford the bailouts that it promised and the market will not bail out the government, Martin Hennecke, senior manager of private clients at Tyche, told CNBC on Thursday.

"We expect a depression in the United States. We expect a depression, very possibly, also in Europe," Hennecke said on "Worldwide Exchange."

The estimated $300 billion cost of the Fannie/Freddie bailout will probably be considered as a loss that the government will have to take, therefore passing it on to taxpayers, he explained.

"We already have $3 trillion of debt, as far as the U.S. government is concerned. These debt figures across the U.S. economy are rising very sharply."

When the government can no longer pass the United States' "immense debt" on to taxpayers, it will turn to the holders of U.S. dollars, leading to the eventual downfall of the currency, Hennecke said.

QUESTINY · 09-22-2008, 02:57 AM

Quote:

Originally Posted by Zarathustra

Exactly, and now the two companies will have full access to the FED emergency lending fund. Fascism in it's truest definition is roaring to life.

The Fed also is going to cancel ALL access to the Discount Window for all banks except MS and GS...words of the day are "Consolidation of Wealth"

Anyone! Anyone!

QUESTINY · 09-22-2008, 02:59 AM

Quote:

Originally Posted by Zarathustra

This was last week, I wonder what this guy thinks now?

http://www.cnbc.com/id/26656750

The end result of the global economic slowdown may be the U.S. announcing national bankruptcy as the government cannot afford the bailouts that it promised and the market will not bail out the government, Martin Hennecke, senior manager of private clients at Tyche, told CNBC on Thursday.

"We expect a depression in the United States. We expect a depression, very possibly, also in Europe," Hennecke said on "Worldwide Exchange."

The estimated $300 billion cost of the Fannie/Freddie bailout will probably be considered as a loss that the government will have to take, therefore passing it on to taxpayers, he explained.

"We already have $3 trillion of debt, as far as the U.S. government is concerned. These debt figures across the U.S. economy are rising very sharply."

When the government can no longer pass the United States' "immense debt" on to taxpayers, it will turn to the holders of U.S. dollars, leading to the eventual downfall of the currency, Hennecke said.

Z, I believe we are close. INFLATE OR DIE!!!!! WE must have Zimbabwe inflation first.

Love/Light 13 · 09-22-2008, 02:59 AM

So now there are official two, count them two central, semi-public, investment banks in the country. Are we really just gonna sit idly by and let this happen? I have seriously considered heading out to Switzerland (Interlaken) to teach and just chill for a bit........... any takers??

*****************

may WISDOM guide COMPASSION

"out of MANY, we are ONE"

Ron Paul, where art thou?

Zarathustra · 09-22-2008, 03:01 AM

Quote:

Originally Posted by QUESTINY

Z, I believe we are close. INFLATE OR DIE!!!!! WE must have Zimbabwe inflation first.

Quote:

Originally Posted by QUESTINY

The Fed also is going to cancel ALL access to the Discount Window for all banks except MS and GS...words of the day are "Consolidation of Wealth"

Anyone! Anyone!

Utter madness. Hitler would be proud.

RubyTuesday · 09-22-2008, 03:31 AM

*shudder*

I feel like I'm watching a movie. I'm not scared, though. What will be will be and at this point I'm just along for the ride.

QUESTINY · 09-22-2008, 03:37 AM

Hi Ruby. It is a movie! 3 hours ago the Russian stock market went up 30%. Our futures market is down 200 points and Gold and Silver are up. Get ready. It will be an interesting Monday.

Zarathustra · 09-22-2008, 03:43 AM

Quote:

Originally Posted by QUESTINY

Hi Ruby. It is a movie! 3 hours ago the Russian stock market went up 30%. Our futures market is down 200 points and Gold and Silver are up. Get ready. It will be an interesting Monday.

and that's 200 points down with short selling banned, wow!

Rocky_Shorz · 09-22-2008, 03:47 AM

Quote:

Originally Posted by Zarathustra

and that's 200 points down with short selling banned, wow!

any word yet from the meeting this weekend on the proposed "plan"

QUESTINY · 09-22-2008, 03:52 AM

Hi. This thread is the result of the meeting. They will get the 700 Billion too because the Federal Reserve are above the government. It is all for show that they get Congress to vote.

Mizar · 09-22-2008, 04:00 AM

Questiny never sleeps, Mizar cannot keep up, and it is Sept 21. the clock is ticking louder than ever.
Keep us informed Questiny, so Mizar doesn't have to quit his Dayjob.
M

Zarathustra · 09-22-2008, 05:08 AM

Quote:

Originally Posted by QUESTINY

Hi. This thread is the result of the meeting. They will get the 700 Billion too because the Federal Reserve are above the government. It is all for show that they get Congress to vote.

Yes, and surely they will get the dictatorial powers as well, i.e. no judicial review, etc...

Northboy · 09-22-2008, 02:14 PM

And its not even September 30th yet.

I wonder how much crud is on the government's books that the taxpayers don't know about.

Zarathustra · 09-22-2008, 02:37 PM

Quote:

Originally Posted by Northboy

And its not even September 30th yet.

I wonder how much crud is on the government's books that the taxpayers don't know about.

That number is going to be ugly.

09-22-2008, 02:44 AM	#1
QUESTINY Avalon Senior Member Join Date: Sep 2008 Location: Nebraska Posts: 407	Goldman, Morgan to Become Bank Holding Companies Goldman, Morgan to Become Bank Holding Companies In one of the biggest changes to Wall Street in decades, Goldman Sachs and Morgan Stanley, the last two independent investment banks, will become bank holding companies, the Federal Reserve said Sunday night. The move fundamentally changes one of the mainstays of modern Wall Street. It heralds new regulations and supervisions of previously lightly regulated investment banks. The move comes after the bankruptcy of Lehman Brothers and the near-collapses of Bear Stearns and Merrill Lynch. Being a bank holding company would give Morgan and Goldman access to the discount window of the Federal Reserve. While they have had access to Fed lending facilities in recent months, regulators had planned to take away discount window access in January. The regulation by the Federal Reserve brings a host of accounting rule changes that should benefit the two banks in the current environment. In return, they will submit themselves to greater regulation, including limits on the amount of leverage they can take on. http://dealbook.blogs.nytimes.com/20...ing-companies/

09-22-2008, 02:44 AM	#2
QUESTINY Avalon Senior Member Join Date: Sep 2008 Location: Nebraska Posts: 407	Re: Goldman, Morgan to Become Bank Holding Companies Sorry. I have been gone a while but here is what the world has come to.

09-22-2008, 02:48 AM	#3
QUESTINY Avalon Senior Member Join Date: Sep 2008 Location: Nebraska Posts: 407	Re: Goldman, Morgan to Become Bank Holding Companies I think that was a bluff to force the issue. Now GS and MS can acquire FDIC failing banks ad naseum. I look for the 10% depository rule to be suspended also in the weeks to come. WM will probably be acquired by GS this week and WB by MS. Forced mergers via FDIC action will be the rule of the day. That way they do not have to be listed as "failures" and the acquisition costs now shift from shareholder liability to taxpayer liability.

09-22-2008, 02:50 AM	#4
Zarathustra Avalon Senior Member Join Date: Sep 2008 Location: Eastern U.S. Posts: 429	Re: Goldman, Morgan to Become Bank Holding Companies Exactly, and now the two companies will have full access to the FED emergency lending fund. Fascism in it's truest definition is roaring to life.

09-22-2008, 02:54 AM	#5
Zarathustra Avalon Senior Member Join Date: Sep 2008 Location: Eastern U.S. Posts: 429	Re: Goldman, Morgan to Become Bank Holding Companies This was last week, I wonder what this guy thinks now? http://www.cnbc.com/id/26656750 The end result of the global economic slowdown may be the U.S. announcing national bankruptcy as the government cannot afford the bailouts that it promised and the market will not bail out the government, Martin Hennecke, senior manager of private clients at Tyche, told CNBC on Thursday. "We expect a depression in the United States. We expect a depression, very possibly, also in Europe," Hennecke said on "Worldwide Exchange." The estimated $300 billion cost of the Fannie/Freddie bailout will probably be considered as a loss that the government will have to take, therefore passing it on to taxpayers, he explained. "We already have $3 trillion of debt, as far as the U.S. government is concerned. These debt figures across the U.S. economy are rising very sharply." When the government can no longer pass the United States' "immense debt" on to taxpayers, it will turn to the holders of U.S. dollars, leading to the eventual downfall of the currency, Hennecke said.

09-22-2008, 02:59 AM	#8
Love/Light 13 Avalon Senior Member Join Date: Sep 2008 Location: Long Island, NY Posts: 128	Re: Goldman, Morgan to Become Bank Holding Companies So now there are official two, count them two central, semi-public, investment banks in the country. Are we really just gonna sit idly by and let this happen? I have seriously considered heading out to Switzerland (Interlaken) to teach and just chill for a bit........... any takers?? ***************** may WISDOM guide COMPASSION "out of MANY, we are ONE" Ron Paul, where art thou?

09-22-2008, 03:31 AM	#10
RubyTuesday Avalon Senior Member Join Date: Sep 2008 Posts: 224	Re: Goldman, Morgan to Become Bank Holding Companies shudder I feel like I'm watching a movie. I'm not scared, though. What will be will be and at this point I'm just along for the ride.

09-22-2008, 03:37 AM	#11
QUESTINY Avalon Senior Member Join Date: Sep 2008 Location: Nebraska Posts: 407	Re: Goldman, Morgan to Become Bank Holding Companies Hi Ruby. It is a movie! 3 hours ago the Russian stock market went up 30%. Our futures market is down 200 points and Gold and Silver are up. Get ready. It will be an interesting Monday.

09-22-2008, 03:52 AM	#14
QUESTINY Avalon Senior Member Join Date: Sep 2008 Location: Nebraska Posts: 407	Re: Goldman, Morgan to Become Bank Holding Companies Hi. This thread is the result of the meeting. They will get the 700 Billion too because the Federal Reserve are above the government. It is all for show that they get Congress to vote.

09-22-2008, 04:00 AM	#15
Mizar Avalon Senior Member Join Date: Sep 2008 Location: British Columbia Posts: 162	Re: Goldman, Morgan to Become Bank Holding Companies Questiny never sleeps, Mizar cannot keep up, and it is Sept 21. the clock is ticking louder than ever. Keep us informed Questiny, so Mizar doesn't have to quit his Dayjob. M

09-22-2008, 02:14 PM	#17
Northboy Avalon Senior Member Join Date: Sep 2008 Location: Vanderhoof, BC Posts: 73	Re: Goldman, Morgan to Become Bank Holding Companies And its not even September 30th yet. I wonder how much crud is on the government's books that the taxpayers don't know about.