Breaking News: Goldman Sachs and Morgan Stanley are now commercial banks!

[thewiseguy]

(CNBC) The Federal Reserve late Sunday approved a request from the country's last two major investment banks — Goldman Sachs and Morgan Stanley — to change their status to bank holding companies.

The change in status will allow them to create commercial banks that will be able to take deposits, bolstering the resources of both institutions. This means a future of stricter regulation, less leverage and probably lower returns.

But it also means a more stable financing future that will put the Federal Reserve and its balance sheet directly behind the two banks.

http://www.cnbc.com/id/26828495

So that is the end of an era for the last two major US investment banks.