Last two largest US investment groups, Morgan Stanley and Goldman Sachs, become banks, bring new era to Wall Street

The Federal Reserve approved on Sunday the bid of investment groups Goldman Sachs and Morgan Stanley to become banks as the last two large investment companies in the US try to make it easier to save themselves in the financial crisis, according to international press agencies, quoting a FED release.

The change would have the two financial institutions lose the investment bank model and would be able to receive loans from the Fed while under its strict supervision, according to the CNN.

Morgan Stanley shares dropped 69% last week, while those of Goldman lost 16%, as Bloomberg reports.

The announcement is part of a larger plan to save US financial institutions facing the current financial crisis.

The Bush Administration asked the Congress on Saturday to allow it to use 700 billion US dollars to buy risky assets in an attempt to stop the crisis.