Federal Reserve to broker biggest takeover of Wall Street
twain | 25.09.2008 09:12 | Globalisation
Federal Reserve allow Goldman Sachs and Morgan Stanley to change their status to bank holding companies.
Federal Reserve to broker biggest takeover of Wall Street
WASHINGTON - The Federal Reserve said Sunday it had granted a request by the country's last two major investment banks - Goldman Sachs and Morgan Stanley - to change their status to bank holding companies.
The Federal Reserve, Fed for short, announced that it had approved the request of the two investment banks. The change in status will allow them to create commercial banks that will be able to take deposits, bolstering the resources of both gangland institutions.
The change continued the biggest takeover of Wall Street since the Great Depression.
The request for the change to bank holding companies was granted by a unanimous vote of the Fed's board of governors during a late Sunday meeting in Washington. The Fed is owned by private family empires, most notably the Rothschilds and the Crown of England, and the Monarchies of Europe (so this occurs at the same time as the UK government continues to refuse to finance the UK monarchy's 6.5 million pound black hole in their finances).
The change of status means both companies will come under the direct protection of that Federal Reserve, which regulates the nation's bank holding companies. The banking subsidiaries of the two institutions will face the stricter regulations that commercial banks are required to meet. Previously, the primary regulator for Goldman and Morgan Stanley was the US Securities and Exchange Commission.
Shares of both institutions had come under pressure ever since the bankruptcy filing last week by investment bank Lehman Brothers and the forced sale of investment bank Merrill Lynch to Rothschild's Bank of America. Investors knew that the last remaining independent investment banks would not be able to survive in their current form. There had been hope that both institutions would be acquired by commercial banks, whose ability to take deposits would give them a stable source of funding.
The decision by the two giants of finance to get approval from the Fed to change their own status represented another frightening development in one of the most 'accelerated' periods in Wall Street history. In the surprise announcement late Sunday, the central bank said that to provide increase funding support to the two institutions during the transition period, they would also be allowed to receive mammoth short-
term loans from the Federal Reserve Bank of New York against various types of collateral.
The Fed said its action would become final after a five-day waiting period required under US law. The decision means that the Goldman and Morgan Stanley will be able not only to set up commercial bank subsidiaries to take deposits, giving them a new major resource base, but they will also have the same access as other commercial banks to the Fed's emergency loan program, paid for by US taxpayers and deflation of the US Dollar.
After the collapse of Bear Stearns and its forced sale to JP Morgan Chase last March, the Fed used powers it had been bought during its 1929 market crash to extend its emergency loans to investment banks as well as commercial banks. However, that extension was only granted on a temporary basis.
Now, as commercial banks, Goldman Sachs and Morgan Stanley will have permanent access to emergency loans from the Fed, the same privilege that domestic commercial banks enjoy.
The action by the Fed's board of governors in Washington came on a day when their Bush administration continued the banking swindle of a quick congressional approval of its demand for an immediate $700 billion to purchase a mountain of bad mortgage debt held by financial companies. The effort represented the most blatant action yet aimed at taking over their destabilized financial markets.
Democrats in Congress said they would publicly demand provisions in the gangster bailout package, in order to appear to be protecting people in danger of losing their homes, as well as pretending to cap executive compensation at firms who get to unload their bad mortgages debt onto the government. But the proposal was expected to win swift congressional passage because both party's economic and political powers are dependent on the Rockefeller and Rothschild monopolies of US banking, industry and
media. The political machine would grind to a halt if an adverse public reaction ensued over their partnership in the oil/war/banking/corporate slave 'marketplace' once known as the "military industrial complex".
WASHINGTON - The Federal Reserve said Sunday it had granted a request by the country's last two major investment banks - Goldman Sachs and Morgan Stanley - to change their status to bank holding companies.
The Federal Reserve, Fed for short, announced that it had approved the request of the two investment banks. The change in status will allow them to create commercial banks that will be able to take deposits, bolstering the resources of both gangland institutions.
The change continued the biggest takeover of Wall Street since the Great Depression.
The request for the change to bank holding companies was granted by a unanimous vote of the Fed's board of governors during a late Sunday meeting in Washington. The Fed is owned by private family empires, most notably the Rothschilds and the Crown of England, and the Monarchies of Europe (so this occurs at the same time as the UK government continues to refuse to finance the UK monarchy's 6.5 million pound black hole in their finances).
The change of status means both companies will come under the direct protection of that Federal Reserve, which regulates the nation's bank holding companies. The banking subsidiaries of the two institutions will face the stricter regulations that commercial banks are required to meet. Previously, the primary regulator for Goldman and Morgan Stanley was the US Securities and Exchange Commission.
Shares of both institutions had come under pressure ever since the bankruptcy filing last week by investment bank Lehman Brothers and the forced sale of investment bank Merrill Lynch to Rothschild's Bank of America. Investors knew that the last remaining independent investment banks would not be able to survive in their current form. There had been hope that both institutions would be acquired by commercial banks, whose ability to take deposits would give them a stable source of funding.
The decision by the two giants of finance to get approval from the Fed to change their own status represented another frightening development in one of the most 'accelerated' periods in Wall Street history. In the surprise announcement late Sunday, the central bank said that to provide increase funding support to the two institutions during the transition period, they would also be allowed to receive mammoth short-
term loans from the Federal Reserve Bank of New York against various types of collateral.
The Fed said its action would become final after a five-day waiting period required under US law. The decision means that the Goldman and Morgan Stanley will be able not only to set up commercial bank subsidiaries to take deposits, giving them a new major resource base, but they will also have the same access as other commercial banks to the Fed's emergency loan program, paid for by US taxpayers and deflation of the US Dollar.
After the collapse of Bear Stearns and its forced sale to JP Morgan Chase last March, the Fed used powers it had been bought during its 1929 market crash to extend its emergency loans to investment banks as well as commercial banks. However, that extension was only granted on a temporary basis.
Now, as commercial banks, Goldman Sachs and Morgan Stanley will have permanent access to emergency loans from the Fed, the same privilege that domestic commercial banks enjoy.
The action by the Fed's board of governors in Washington came on a day when their Bush administration continued the banking swindle of a quick congressional approval of its demand for an immediate $700 billion to purchase a mountain of bad mortgage debt held by financial companies. The effort represented the most blatant action yet aimed at taking over their destabilized financial markets.
Democrats in Congress said they would publicly demand provisions in the gangster bailout package, in order to appear to be protecting people in danger of losing their homes, as well as pretending to cap executive compensation at firms who get to unload their bad mortgages debt onto the government. But the proposal was expected to win swift congressional passage because both party's economic and political powers are dependent on the Rockefeller and Rothschild monopolies of US banking, industry and
media. The political machine would grind to a halt if an adverse public reaction ensued over their partnership in the oil/war/banking/corporate slave 'marketplace' once known as the "military industrial complex".
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