The end of an era on Wall Street

Investment banks have gone the way of the dinosaurs, as the last two morphed into bank holding companies, able to take retail deposits. Meanwhile, Japan's banks have been doing a bit of empire building.

"If only, America's financial authorities must feel, they could gag congressmen as easily as they have muzzled short-sellers," said Economist.com. Early this week market confidence was dented by political wrangling over the $700bn fund to buy up banks' toxic mortgage-related assets, despite the risk of financial meltdown and a severe recession in America if the plan is blocked. Meanwhile, Japanese banks moved in on the US and the last two large independent investment banks disappeared. It's "the end of Wall Street as we know it", said The Wall Street Journal.

The demise of investment banks

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