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Goldman Sachs makes a bank | Advantage ‘zyaada’

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[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.

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

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