When people talked about the options available to Goldman Sachs (NYSE: GS) if it wanted out from under the Federal Reserve's supervisory umbrella, some raised the idea of the firm going public. Others suggested that it could simply give up the federal bank charter it acquired in September 2008 at the height of the crisis (recession news).

This seemed like a logical route. The firm's deposit-taking operations are more than minor in the scheme of its overall business. But Breakingviews notes that the much-discussed reform proposal from Sen. Christopher Dodd (D-Conn.) contains a provision that will not allow bank holdings companies that received TARP funds to escape oversight by the Fed.

The bank could always argue that it was forced to take the funds. But in the end, neither it nor Morgan Stanley (NYSE: MS) wants to be seen as maneuvering to escape regulation. So Goldman Sachs especially would appear to be vulnerable to attempts to restrain its trading activities.

For more:
- here's the article

Related Articles:
Goldman Sachs, JPMorgan require more collateral from funds
Goldman Sachs: Regulations to hit hard?
The role of Goldman Sachs in Greek crisis