![\"Morgan](\"http:\/\/visitbulgaria.info\/files\/Morgan-Stanley.jpg\")
<\/p>\n<\/p>\n
The beginnings of another new economy <\/a>are taking shape as Morgan Stanley and Goldman Sachs prepare to close the curtain on investment banking<\/a>.<\/p>\n Mitsubishi UFJ Financial Group Inc., Japan’s largest bank, will inject 900 billion yen ($8.4 billion) into Morgan Stanley to help it transition to a bank holding company. Goldman Sach’s strategy is slightly different albeit with the same ultimate objective i.e. to become a commercial bank. According to Bloomberg<\/a>, Goldman already has in excess of $20 billion in customer deposits in two subsidiaries and is creating a new one, GS Bank USA, that will have more than $150 billion of assets, making it one of the 10 largest banks in the U.S.<\/p>\n <\/p>\n The Securities and Exchange Commission will have not much to do henceforth save regulate some of the boutique investment banks that have largely advisory businesses.<\/p>\n “The decision marks the end of Wall Street as we have known it,” said William Isaac<\/a>, a former chairman of the Federal Deposit Insurance Corp. “It’s too bad.”<\/p>\n Many champion the transition on the basis that a stronger Main Street holds promise of a more stable, sustainable economy as compared to the risky endeavors of Wall Street. But is this what is needed to doctor an economy on the verge of depression?<\/p>\n The move is also likely to result in lower compensation for the ex-investment banking employees. A decrease in investment banking salaries which have historically enabled further employment in U.S. households are likely to have a negative impact on household employment and economics. It will be interesting to watch how the results of the shakeup unfold as an exercise in sustainable economics.<\/p>\n Related Posts:<\/p>\n To Bailout or Not to Bailout: Is Free Market Economics Sustainable?<\/a> Photo credit: Google<\/em><\/p>\n","protected":false},"excerpt":{"rendered":" Mitsubishi UFJ Financial Group Inc., Japan\u2019s largest bank, will inject 900 billion yen ($8.4 billion) into Morgan Stanley to help it transition to a bank holding company. Goldman Sach\u2019s strategy is slightly different albeit with the same ultimate objective i.e. to become a commercial bank. According to Bloomberg, Goldman already has in excess of $20 billion in customer deposits in two subsidiaries and is creating a new one, GS Bank USA, that will have more than $150 billion of assets, making it one of the 10 largest banks in the U.S. <\/p>\n","protected":false},"author":65,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_uag_custom_page_level_css":"","site-sidebar-layout":"default","site-content-layout":"","ast-site-content-layout":"","site-content-style":"default","site-sidebar-style":"default","ast-global-header-display":"","ast-banner-title-visibility":"","ast-main-header-display":"","ast-hfb-above-header-display":"","ast-hfb-below-header-display":"","ast-hfb-mobile-header-display":"","site-post-title":"","ast-breadcrumbs-content":"","ast-featured-img":"","footer-sml-layout":"","theme-transparent-header-meta":"","adv-header-id-meta":"","stick-header-meta":"","header-above-stick-meta":"","header-main-stick-meta":"","header-below-stick-meta":"","astra-migrate-meta-layouts":"default","ast-page-background-enabled":"default","ast-page-background-meta":{"desktop":{"background-color":"var(--ast-global-color-4)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""},"tablet":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""},"mobile":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""}},"ast-content-background-meta":{"desktop":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""},"tablet":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""},"mobile":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""}},"footnotes":""},"categories":[30,32,40],"tags":[900,1868,2343,2690,2833,2867,3700,4497],"adace-sponsor":[],"spectra_custom_meta":{"_edit_last":["65"],"tweet_this_url":["http:\/\/digg.com\/d1aEOq"],"dsq_thread_id":["143460122"],"_jetpack_related_posts_cache":["a:1:{s:32:\"8f6677c9d6b0f903e98ad32ec61f8deb\";a:2:{s:7:\"expires\";i:1694945072;s:7:\"payload\";a:0:{}}}"],"_uag_page_assets":["a:9:{s:3:\"css\";s:263:\".uag-blocks-common-selector{z-index:var(--z-index-desktop) !important}@media (max-width: 976px){.uag-blocks-common-selector{z-index:var(--z-index-tablet) !important}}@media (max-width: 767px){.uag-blocks-common-selector{z-index:var(--z-index-mobile) !important}}\n\";s:2:\"js\";s:0:\"\";s:18:\"current_block_list\";a:2:{i:0;s:14:\"core\/paragraph\";i:1;s:10:\"core\/image\";}s:8:\"uag_flag\";b:0;s:11:\"uag_version\";i:1713657651;s:6:\"gfonts\";a:0:{}s:10:\"gfonts_url\";s:0:\"\";s:12:\"gfonts_files\";a:0:{}s:14:\"uag_faq_layout\";b:0;}"],"rank_math_news_sitemap_robots":["index"],"rank_math_robots":["a:1:{i:0;s:5:\"index\";}"],"rank_math_og_content_image":["a:2:{s:5:\"check\";s:32:\"1f364877f2e66b1cb5e396c2b93202e8\";s:6:\"images\";a:0:{}}"]},"uagb_featured_image_src":{"full":false,"thumbnail":false,"medium":false,"medium_large":false,"large":false,"1536x1536":false,"2048x2048":false,"adace-sponsor":false,"adace-sponsor-2x":false},"uagb_author_info":{"display_name":"Reenita Malhotra","author_link":"https:\/\/inspiredeconomist.com\/author\/reenymal\/"},"uagb_comment_info":0,"uagb_excerpt":"Mitsubishi UFJ Financial Group Inc., Japan\u2019s largest bank, will inject 900 billion yen ($8.4 billion) into Morgan Stanley to help it transition to a bank holding company. Goldman Sach\u2019s strategy is slightly different albeit with the same ultimate objective i.e. to become a commercial bank. According to Bloomberg, Goldman already has in excess of $20…","_links":{"self":[{"href":"https:\/\/inspiredeconomist.com\/wp-json\/wp\/v2\/posts\/730"}],"collection":[{"href":"https:\/\/inspiredeconomist.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/inspiredeconomist.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/inspiredeconomist.com\/wp-json\/wp\/v2\/users\/65"}],"replies":[{"embeddable":true,"href":"https:\/\/inspiredeconomist.com\/wp-json\/wp\/v2\/comments?post=730"}],"version-history":[{"count":0,"href":"https:\/\/inspiredeconomist.com\/wp-json\/wp\/v2\/posts\/730\/revisions"}],"wp:attachment":[{"href":"https:\/\/inspiredeconomist.com\/wp-json\/wp\/v2\/media?parent=730"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/inspiredeconomist.com\/wp-json\/wp\/v2\/categories?post=730"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/inspiredeconomist.com\/wp-json\/wp\/v2\/tags?post=730"},{"taxonomy":"adace-sponsor","embeddable":true,"href":"https:\/\/inspiredeconomist.com\/wp-json\/wp\/v2\/adace-sponsor?post=730"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}Is the SEC out of a job?<\/h3>\n
Will the transition help or hurt a sustainable economy?<\/h3>\n
\nLehman Brothers Collapse: New Economic Architecture Required<\/a>
\nFinancial Crisis: What Will The Collapse of Investment Banking Mean for CSR?<\/a><\/p>\n