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