Why Goldman Sachs Is Launching an Online Bank
- Regulators unveil liquidity rule, noting most banks meet it
- Goldman, Morgan Stanley have multiplied deposits since crisis
Goldman Responds to New Liquidity Rule With Online Bank
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Goldman Sachs Group Inc.’s new online bank, acquired from General Electric Co. last week, caps a decade-long shift by the firm and Morgan Stanley to lean more on deposits for funding -- efforts that will help them comply with a U.S. rule unveiled Tuesday.
Goldman Sachs took over $16 billion of deposits from the online business it bought from GE Capital. It merged the platform with its GS Bank USA unit and is offering 1.05 percent interest on savings accounts opened online. That’s adding to a deposit base that’s already grown almost seven-fold since 2007.