The Banking and Strategy Initiative

Chillin' out till it needs to be funded

Goldman Sachs makes a bank | Advantage ‘zyaada’

Warning::This opinion may be speculative, overtly optimistic and may indulge in a little ‘appropriate’ gainsaying encouraging parties unmindful of law to continue doing so and might otherwise blind side you and the readers you recommend to. However, other such reflective, thinking and intelligent opinion may yet be unavailable on the great world wide web. We will not ask you to pay for it and may be delighted if you are able to help yourself and your friends out of reading and recommending this opinion. Our opinions are held in high regard because we always say what matters and what helps you win wars in business and otherwise in an office of profit.

[nytimes] Goldman Sachs has agreed to invest $20 million in ShoreBank, a Chicago bank which aims to expand lending in poor communities, in an effort to help keep the bank from being seized by the Federal Deposit Insurance Corp., The Wall Street Journalreported, citing people familiar with the situation.

An investment by Goldman would put the bank in a group that tentatively includes Bank of America,Citigroup and JPMorgan Chase, The Journal said.

Goldman’s chief executive, Lloyd C. Blankfein, has held discussions with F.D.I.C. chief Sheila C. Bair, as well as other bank executives about making an investment, the newspaper said.

yes, its happened. GS is willing to go all the way to keep its status as a bank holding company, not just keeping the licence for ransom from the fed overnight window..

The required $100million odd wd be a mere pittance and despite being at the bottom of the investment bank league tables, the trading powerhouse would also be activating its banking product lines in Asia this year. The second edition of the ‘bank’ already looks better than a tired sequel.


This entry was posted on May 14, 2010 by in Banking, Emerging Markets, Financial Markets and tagged , , , .


%d bloggers like this: