Fed will regulate Goldman Sachs Morgan Stanley

It appears to be all over for the highest paying Wall Street Companies and financial firms. After the Collpase of Lehman Brothers who declared Banruptcy, followed by Merrill Lynch is being bought over by Bank of America for $50 billion, and Federal Reserve Bank or FED making a large amount of bailout for the bleeding financial industry, the autonomy of the financial firms is all set to go.

As per the news, Wall street (remaining or Surviving giants) Goldman Sachs and Morgan Stanley gave up their cherished investment banking status in return for cover under the Fed's wing to survive a financial storm that U.S. authorities aim to tackle with a $700 billion bailout plan.

The Federal Reserve approved the two bank's transformation into bank holding companies regulated by the central bank, effectively ending Wall Street's investment banking model and subjecting the two to much tighter regulation. Now, the Wall Street giants would be better regulated and hence less risky, as claimed by various law firms and experts.
The bailout plan follows a wrenching week that transformed Wall Street with Lehman Brothers' failure, the agreed sale of Merrill Lynch & Co and a government takeover of ailing insurer AIG. It was also possible that within days, Morgan Stanley would accept a partner.