This morning we woke up to the news that Goldman Sachs and Morgan Stanley were about to become bank holding companies. These two seemed to set the bar and appeared to be the only two that would survive last week. Goldman consistently posted positive earnings. Morgan Stanley held their own but clearly had issues as it sought an infusion of capital.
From the NY Times this morning:
By becoming bank holding companies, the firms are agreeing to significantly tighter regulations and much closer supervision by bank examiners from several government agencies rather than only the Securities and Exchange Commission. Now, the firms will look more like commercial banks, with more disclosure, higher capital reserves and less risk-taking.
Many have said it's the end of an era. Who really knows. But this links you to a good article in the NY Times.
What's a Bank Holding Company? From Wikipedia.
For local real estate, value is key; credit worthiness is really important. Rates this morning looked fairly stable:
30 Year Fixed, Conventional - approx 6%
5 Year ARM, Jumbo - approx. 5.5%
7 Year ARM, Jumbo - approx. 6%
DS
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