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..."