Banking Practice Exam 2025 - Free Banking Practice Questions and Study Guide

Goldman Sachs remained independent at the end of 2008, which is significant given the turmoil in the banking and financial sectors during that time. The global financial crisis led to the collapse or acquisition of several major investment banks, notably Bear Stearns, Lehman Brothers, and Merrill Lynch, which were either sold or went bankrupt as a result of their exposure to toxic assets linked to the housing market.

Goldman Sachs, on the other hand, successfully navigated this period by leveraging its strong reputation and the strategic decisions it made before and during the crisis. In September 2008, facing tremendous uncertainty, Goldman Sachs converted from an investment bank into a bank holding company. This allowed it to access the Federal Reserve's emergency lending facilities, which provided additional liquidity and support during the crisis, thus enabling the firm to survive when others could not.

While the other firms mentioned either ceased to exist as independent entities by the end of 2008 or were acquired, Goldman Sachs' ability to adapt and secure government support ultimately helped it maintain its independence during this turbulent period.