“What do you think of becoming a bank holding company?” Blankfein asked Mack when he picked up the receiver. Mack hadn’t really studied the issue and asked, “Would that help us?” Blankfein said that Goldman had been investigating the possibility and explained to him the benefits—namely, that if they allowed themselves to be regulated by the Federal Reserve, they’d have unlimited access to the discount window and would have an easier time raising capital, among other things.
