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The most dramatic volte-face has been that of the surviving investment banks, Goldman Sachs and Morgan Stanley, which became bank holding companies in September, making it easier for them to take deposits.The upheaval in funding profiles is arguably greater for retail banks, however.
The two largest surviving investment banks, Goldman Sachs and Morgan Stanley, had operated without the Fed's supervision, but in the heat of the crisis their capital-markets funding dried up, and they had no choice but to convert — "at the point of a sword," as one former Fed official put it to me — into bank holding companies to get access to the Fed's especially favorable loans.
The two largest surviving investment banks, Goldman Sachs and Morgan Stanley, had operated without the Fed's supervision, but in the heat of the crisis their capital-markets funding dried up, and they had no choice but to convert—"at the point of a sword," as one former Fed official put it to me into bank holding companies to get access to the Fed's especially favorable loans.
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In those copper mines which survived, investment in new machinery virtually ceased, so employment of some bal maidens continued.
The last surviving independent investment banks were granted bank holding company charters to gain access to emergency credit from the central bank.
"We knew what we had to do if we wanted to survive, attract investment and become competitive," Mrs. Josing said.
Their $100,000 stakes are imaginary, but those who survive this investment competition could pocket a very real $500,000.
If we are to survive, the investment community needs to divest from climate change-wreaking fossil fuels and switch to safe, clean, job-creating renewable energy sources.
"Young startups need resources to survive, like investment, social capital and more.
But whether or not those companies survive, the investments themselves have been wasteful, and that will eventually damage the economy.
The suspicion is that only the strongest and most diversified groups will survive.The investment-banking cycle is brutal.
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com