Respuesta :

Goldman Sachs and Morgan Stanley, highly exposed to mortgage-backed securities, became holding companies or commercial banks to qualify for emergency loans.

What is a bank holding company?

When a corporation owns a controlling interest in one or more banks without offering banking services, it is described as a bank holding company.

A bank holding company enjoys the following advantages:

  • Tax deferral and tax avoidance
  • Financial leverage
  • Improved access to capital markets
  • The ability to expand banking products and geographic markets.

Thus, Some firms, such as Goldman Sachs and Morgan Stanley, who were highly exposed to mortgage-backed securities, became holding companies or commercial banks to qualify for emergency loans.

Learn more about bank holding companies at https://brainly.com/question/2843605