Goldmans, MS abandon model, seek Fed shelter

And then there were none. Goldman Sachs and Morgan Stanley, the last of the big five Wall Street investment banks, have abandoned their business model to secure greater Fed protection and soothe negative market sentiment.

The two firms said Sunday they would swap their once-cherished investment-bank status to become bank holding companies. Both will now have long-term access to Fed financing, but will face tougher regulation at the hands of the central bank and the Federal Deposit Insurance C