For all your online banking needs, turn to ... Goldman Sachs Group Inc.?
That may indeed soon be the case as the former investment banking giant mulls starting an Internet bank as a way gathering a deposit base without giving up its reputation for catering to companies and institutional investors.
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Goldman Sachs hadn't been moving fast since receiving approval to become a bank holding company, but now the pace
is starting to pick up since the bank got a New York state bank
charter last week. It's now expected to name Gerald Corrigan, a
former president of the Federal Reserve Bank of New York, as chairman
of its banking subsidiary, Goldman Sachs Bank USA.
The foray into Internet banking would give Goldman access to more
reliable sources of capital for its capital markets businesses, as well
as for its corporate and real estate lending businesses, than the
turbulent debt markets that Goldman had used as a investment bank.
Goldman swiftly ran into trouble there after the failure of Lehman
Brothers Holdings Inc. froze the credit markets solid in September. And if recent reports of the depth of
Goldman's losses last quarter are accurate, the bank is going to need that cushion. -
George White See Reuters storySee Dealscape post on Goldman's earnings
