Has the Wall Street bank gone forever?
We have been today hit with news that the last two standing Wall Street banks have converted themselves into lower risk traditional banking operations. Both Morgan Stanley and Goldman Sachs have accepted licences from the Federal Bank which allow them to take deposits from customers but curtails the range of investments they are able to trade in - affectively taking away much of the risky investment we have heard of over the last few months.
In a separate move Morgan Stanley has also confirmed the sale of a 20% stake in the business to Mitsubishi Financial Group of Japan in a bid to inject more confidence and stability into the group. While the risk averse move in accepting the new licence was unexpected the groups are expected to revert back to their traditional licences as and when markets stabilise.
It seems that not only have we seen some of the world's major investment houses fall but the operations left standing have now been forced to retreat from many of their traditional markets. Life has really changed on Wall Street over the last few months and we are set to see more change with the government taking a firmer hand.
Share this..
Related stories
Gordon Brown hopes to reduce the national debt by 50% in four years
Despite the fact that the opinion polls suggest that Gordon Brown will not win a second term at the next general election, he has already revealed plans to reduce the national debt by 50% over the next four years. While there is some debate as to the exact level of national debt, with some believing it to be well in excess of £1 trillion, there is no doubt that a 50% reduction in four years is am...
Read MoreHenry Paulson in talks with US banks
Henry Paulson has emerged from his bunker to begin talks with the massive array of US banks as details of the $700 billion recapitalisation of the US financial system begin to emerge. While the UK market had its own day in the sun with an 8% rise it was the US market which took the lead with an 11% rise of just under 1,000 points!
Slowly but surely we are seeing an increased accept...
Growth in mobile broadband hailed by Ofcom
Mobile broadband, which sees people gaining access to the internet through USB modems, data cards and "dongles", is increasing rapidly in popularity.This was the headline finding from regulator Ofcom's new report into the communications market in the UK.According to the body, sales of dongles have shot up from 69,000 to 133,000 per month over the course of this year alone.It is the growth of mobil...
Read MoreLord Turner defends his Tobin tax speech
Lord Turner has today defended his recent speech in which he called for a tax to be charged on all financial transactions and claimed that, in a number of instances, the UK banking sector was "socially useless". Lord Turner's recent comments attracted very different opinions from across the globe and the financial community and despite the fact that this particular subject is outside of his remit...
Read More