The Death of the Investment Bank

Updated from 8:38 a.m. EDT.

The modern, standalone investment bank died Sunday, the culmination of a stunning seven days that transformed Wall Street.

Goldman Sachs and Morgan Stanley, the last two remaining major, independent investment banks, on late Sunday agreed with the Federal Reserve to become bank holding companies that subject them to closer regulation and cash requirements, in exchange for easier access to capital.

Once vital cogs in global finance, investment banks like Goldman, Morgan Stanley -- and recently defunct firms like Bear Stearns and Lehman Brothers -- were brokers in prestige and capital. Most companies could not finance their business without them. ...