Historical moments again

The investment banking branch is past! The last 2 surviving mohicans (GS and MS) decide to become regular banks. There is no more independent investment bank in US. This is the acknowledgement that a business model has died.

Warning! Bumpy road ahead! More than 1 year of troubles in the financial markets will hit hard the GDP of G8.

"WASHINGTON (MarketWatch) -- In yet another extraordinary development for Wall Street, the Federal Reserve said late Sunday night that venerable investment banks Goldman Sachs and Morgan Stanley will become bank holding companies, subjecting themselves to stricter federal oversight.
The Wall Street titans will be allowed to transition into holding companies following a mandatory five-day waiting period, and will be able to take advantage of credit from the Federal Reserve Bank of New York in order to complete the transition. "