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NEW YORK (Reuters) - Credit insurance costs on Morgan Stanley and Goldman Sachs fell on Monday after the investment banks agreed to become bank holding companies in a move to survive a deepening financial storm.
Five-year credit default swaps on Morgan Stanley fell by 49 basis points to 498 basis points, or $498,000 a year to protect $10 million of debt. Goldman's credit default swaps fell by 39 basis points to 328 basis points, according to data from CMA DataVision.
Morgan Stanley and Goldman sought shelter with the Federal Reserve in a move that effectively ends the Wall Street investment banking model of the past two decades.
Reporting by Dena Aubin, Editing by Chizu Nomiyama