The Wall Street giants, Goldman Sachs and Morgan Stanley, return to basic banking services such as deposits and loans for the middle class.

In the darkest days of the financial crisis, Goldman Sachs and Morgan Stanley became bank holding companies to cement trust and win the support of the Federal Reserve.

But now, with reduced income from operations by trading with the introduction of more stringent regulations that forced them to abandon the operation once profitable and some higher requirements related to capital, the two giants are turning to basic banking betting that their reputation will help to compensate for the relative lack of experience with the operation of deposits and loans for middle-class Americans.

The maneuver, which has surprised many, is suggesting that business sites in the capital market reached a turning point. But while the new regulations and the low level of activity strongly affect income from trading.

By embracing basic banking services, the two companies are trying the second option, although differently. Morgan Stanley is trying to “squeeze” more income from generally wealthy pool existing customers, while Goldman is targeting a wider range of customers, opening them the door for the less wealthy.

From one perspective, entering this segment may come at the right time. Investors now look to bank shares, which they believe will perform well if interest rates will increase.

In order not to lag behind rival banks, Goldman and Morgan Stanley have increased their latest transactions relating to deposits and loans. Thus, the total loans granted by Morgan Stanley tripled in 2012, to 93 billion dollars, while that those of Goldman rose from $25 billion to $64 billion in the same period.

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