A week in which independent investment banks have all but ceased to exist marks the beginning of a new era, according to The Wall Street Journal.
The decision by Morgan Stanley and Goldman Sachs to accept more federal oversight will move financial innovation away from banks and toward hedge funds and private equity, according to the Journal.
“Adaptation and innovation have been hallmarks of our financial system since before there was a Goldman Sachs or Morgan Stanley,” the Journal says. “If Congress is wise next year as it attempts to reorganize our financial system, it will recognize the benefits of a sturdier system without crushing its ability to innovate.”