Monday, September 22, 2008

Would you like to open a checking account with Goldman Sachs?

Last week, Goldman Sachs and Morgan Stanley were the only remaining investment banks in the country. This week, they are officially federal "bank holding companies." That means that they can play with money directly from us little people who will make deposits at the commercial banks they can now legally open. Says MorganStanley in a Sunday press release,

Morgan Stanley sought this new status from the Federal Reserve to provide the Firm maximum flexibility and stability to pursue new business opportunities as the financial marketplace undergoes rapid and profound changes. The Firm will pursue initiatives to expand the retail banking services it offers its retail clients and build a stable base of core deposits. Morgan Stanley has more than 3 million retail accounts and had $36 billion in bank deposits as of August 31, 2008.

Free checking with Morgan Stanley! Open a saving account with Goldman Sachs and receive $10 free. They are opening their first national bank in Utah (actually converting their Utah industrial bank to a national bank).

We are supposed to feel comforted now because (thanks to all the deregulation in Wall Street spearheaded by McCain and friends), even with those 3 million retail accounts and $36 billion in bank deposits, they weren't under the watchful eye and regulatory power of the Federal Reserve before...not like they have to be now. Still, they want us to believe that business goes on as usual for them,

The Firm does not expect significant adverse tax or accounting effects from this new status, nor does the Firm expect there to be limitations on its activities that would have a material impact on Morgan Stanley’s overall business.

A number of my college classmates went to work for these investment banks. I can't tell you how glad I am that I didn't. I'm not interested in the cold calculations for maximum profit. When the world is looking a little rosier again, I'm sure these big banks and their friends will be crying for less regulation again..."Save us, little people, save us..."


Unknown said...

I was hoping for a free toaster.;)

Alien Citizen said...

Let's hope they get their act together in the Senate with the bailout bill or we'll all be toast. I have no desire to live through a Great Depression.

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