Originally Posted by cres
were you in a cocoon when the **** hit the fan, and all the IB and trade banks ran to become real deposit holding institutions,
This didn't actually happen, you realize.
GS got their bank holding sub approved in ~2002, and then expanded further in 2006. And as noted in several reputable media accounts, GS [among others] didn't want to have the Fed force loans on them
- especially after WEB gave them $5Bn and would have been happy to loan them more at higher rates. [Rightly or wrongly for both parties, they felt they didn't need the money.]
And if your retort is 'Well, the whole fin'l system would have failed so GS would have failed OMG,' then that's not really a WallSt problem is it?
GS would be no worse off than anyone else. GS was in the strongest fin'l position of any major institution and paid their loans back the fastest.
The notion that GS 'ran to become a real bank' is an absurd myth
. No one thought they were becoming a bank as it was happening anyway, and no one does now.