This past weekend signaled the end of an era in American capitalism with the two remaining US Investment Banks changing their status under SEC rules.   Goldman Sachs and Morgan Stanley will formally shift themselves into Bank Holding Companies capable of taking deposits.   The move, approved by the SEC in the hopes of stabilizing the debilitated finance markets, will place these two Wall Street giants under much more stringent government regulations - the same regulations that preserved the majority of commerical banks in this country like Bank of America, JP Morgan Chase and, so far, Citigroup, while storied invesment banks like Merrill Lynch, Lehman Brothers and Bear Stearns were either acquired by their commercial banking counterparts or disappeared entirely after making too many risky moves and losing the confidence of the marketplace.

After having lived in New York City for more than a decade, I find this turn of events almost unbelievable.   If you had asked me 5 years ago what was the most stable, prominent and lucrative company to work for in the world I would have probably said Goldman Sachs, the Rolls Royce of investment banks.   To see these institutions on Wall Street voluntarily subjecting themselves to more government regulation to ensure their survival is simpy astonishing.

Meanwhile the Federal Government is crafting a $700 Billion+ bailout for Wall Street.   You can takepart by contacting your Senator and Representative in Congress to demand that strict regulations are placed upon Wall Street and provisions are provided to those suffering financially on Main Street before any corporate welfare is provided to these firms that ran themselves into the ground.

LINKS:

NY Times: Goldman and Morgan Shift Marks End of Era in Finance

Bloomberg: Goldman, Morgan Stanley Bring Down Curtain on Era

LA Times: Fed now will regulate Goldman, Morgan as banking firms