STEVE INSKEEP, host: NPR's business news starts with the demise of the independent investment bank.</s>STEVE INSKEEP, host: The last two big Wall Street investment banks, the only ones to survive the financial crisis so far, are changing. Goldman Sachs and Morgan Stanley have decided to convert themselves into traditional commercial banks. Late last night, the Federal Reserve approved their requests. This means Morgan Stanley and Goldman Sachs will be able to accept deposits, which gives them more financial cushion in hard times. As we've seen during the credit crunch, regular banks with deposits to rely on have proven more resilient than pure investment banks. The change does mean that Morgan and Goldman will be subject to more regulation, and they are likely to become less profitable because of rules for commercial banking that they will now have to comply with.
To survive the economic meltdown, two major investment banks have decided to change their status to traditional commercial banks. The Federal Reserve approved the requests from Goldman Sachs and Morgan Stanley Sunday. Now the two titans will be able to accept deposits, which will give them more of a financial cushion in hard times.