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 The restructuring of Wall Street continued over the weekend as U.S. officials detailed their rescue plan for financials, lawmakers reacted, and Wall Street's last two independent investment banks became bank holding companies. Meanwhile, Japan's Nomura Holdings Inc. has agreed to acquire bankrupt Lehman Brothers Holdings Inc.'s Asian operations for $225 million and is vying with Barclays plc, which bought the fallen investment bank's North American investment bank in a deal approved Saturday, for certain of Lehman's European assets. The events led Asian markets up and by 8 a.m. in New York; European stocks were down, continuing a rocky day.
The bailout plan unveiled Saturday gives Treasury the discretion to spend $700 billion over the next two years. And lawmakers from both parties responded Sunday saying they would iron out whatever details possible, rather than give Treasury Secretary Henry Paulson carte blanche to do as he saw fit. They said they may add some initiatives of their own, particularly measures to help homeowners weather the downturn without losing their homes, and a stimulus package is likely to come under debate.
European finance ministers, or those who speak on their behalf, appeared unmoved by Paulson's plea to do as he did, "quoted almost unanimously as saying banks in their country weren't as exposed and aren't suffering as much as their U.S. counterparts," The Deal's Andrew Bulkeley noted. Meanwhile, Wall Street's last two investment banks will become bank holding companies and come under Federal Reserve supervision. The Fed said late Sunday Goldman, Sachs & Co. and Morgan Stanley would have access to the Fed's discount window for emergency lending. The restructuring will also constrain their businesses, forcing them to carry less leverage and comply with a slew of regulations, The Deal's Vipal Monga noted. - Carolyn Murphy Lawmakers stake bailout positions U.S. officials detail rescue plan Goldman, Morgan Stanley become banks Nomura wins Lehman Asian assets Lehman sale approved, value drops Europe unmoved by Paulson plea Categories Deal Video
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