This is THE BIG question that is being asked by many all over the world, today! Yes or No? With the latest developments with the last standing BIG 2, Morgan Stanley and Goldman Sachs Group Inc., we are forced to believe so!!
On Sunday, Sept. 22, 2008, the standalone investment bank died quietly, after a brief but dramatic illness. It was 75 years old. Hope you all know which one I am referring to here!!
On Sunday night, Goldman Sachs and Morgan Stanley said they would become bank holding companies, submitting to the authority and oversight of federal banking regulators. After the collapse of Bear Stearns, the bankruptcy filing of Lehman Brothers and the agreement by Merrill Lynch to be acquired by Bank of America, Goldman and Morgan were the last remaining investment banks. Goldman noted that the move would make it the fourth biggest bank holding company in the U.S. Morgan said it was seeking “maximum flexibility and stability to pursue new business opportunities as the financial marketplace undergoes rapid and profound changes.”
Christine Harper and Craig Torres at www.bloomberg.com says “The Wall Street that shaped the financial world for two decades ended last night, when Goldman Sachs Group Inc. andMorgan Stanley concluded there is no future in remaining investment banks now that investors have determined the model is broken.”
For more reading:-
- Bloomberg.com - Goldman, Morgan Stanley Bring Down Curtain on an Era
- Business Week - And Then There Were None
- CNNMoney.com - Goldman, Morgan Stanley To Convert To New Model
- MoneyControl.com - Fed bailout of Goldman, MS: End of I-Bank Era
I always wanted to be an investment banker. The very reason why I wanted to do my MBA was for this! Now what? What should be my long term and short term goals? I will have to readjust myself before the BIG interviews!!