It would be pretty nifty to bank online with Goldman Sachs (NYSE: GS). It is the world's premier investment bank, although it has converted itself to a commercial bank to get government funding.
Still, saying I bank online with Goldman sounds better than saying I bank online with the First National Bank of Akron Ohio.
According to The Wall Street Journal, "If Goldman goes ahead, the new unit will seek deposits that can be used to fund various businesses now that Goldman is a bank-holding company." In other words, now that Goldman is a bank, it wants to drive up deposits. Starting an online bank is cheaper than going out and buying a number of regional banks to pick up their depositor bases.
All kidding aside, the chance to have an account at such a prestigious financial institution could draw a great deal of money, especially from the well-to-do. A marquis name should make for marquis customers. And, that should bring Goldman a lot of the assets it needs to fund its more profitable businesses.
Douglas A. McIntyre is an editor at 247wallst.com.
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Reader Comments (Page 1 of 1)
12-03-2008 @ 9:51AM
david said...
Goldman will figure a way to take your money away from you, bank or no bank. These crooked SOB's shouldn't be trusted with your child's lunch money let alone your savings.
12-03-2008 @ 10:59AM
BHarrison said...
I've had a modest investment in a Goldman Sachs account for many years; and it has performed disappointly poorly.
I've thought about cashing it in for many years; but have not done that, hoping that it would turn around.
If that account is any indication of the "value" of Goldman Sachs, I think that I will avoid any future investment in the company. Their proven poor performance speaks for itself. Why should I risk any further capital with them.
12-03-2008 @ 11:34AM
jeff said...
This is BS i have to resign in to comment here ... AOL is again trying to limit comments .. can't comment on their REAL ESTATE section the AUTO SECTION and have to have separate sign ins for these other special sections because they want you believe the BS here!
12-03-2008 @ 3:01PM
jeff said...
Time to make our country free again ... First issue greenbacks like Andy Jackson did when he was President and get Rid of the FED and the BIG BANK control of this country which was a scheme by JP MORGAN and his son (see zeitgiest on the net)!!! Get rid of HEDGE FUNDS and FUTURES ON STOCKS !!Put tariffs on all imports which exceed exports so if they buy a billion from us they get a billion with no tariffs if more make 'em' pay!! Make all US based companies keep their customer service in the US ... do you want your financial data in India or Mexico(it is now!!)! Go Electric cars now and promote use of solar ... wind ... wave and hydroelectric generators and start Geothermal plants (they power all of Iceland)!!! Get those Electric cars from TELSA Motors on the Road now give then Billions not the BIG 3!!! Get rid ot the 20 million ILLEGALS and that will lower un-employment right now!!
12-03-2008 @ 11:48AM
Bill Daviau said...
I really don't know what all of the previous posters are so upset with Goldman about. Thousands and thousands of people have made millions and millions from Goldman investments. They were the stongest investment bank left standing when things went bad.
I'll bank with Goldman.
12-03-2008 @ 12:11PM
EMIL J KOVACH JR said...
Most People That Have Deposit Accounts, Will deal where Their Deposits Are, Fot Things, You Normally Go To A Bank to Ask For. Mortgage, Personal Loans, Home Equity, So Here The Banks With The Most Depositors, Wins. But There Is An On Line Banking Market Emerging, And Since GOLDMAN, Is New York Based, They Can win, Here, But For The Distant Future, I Suspect Most People Would Rather Bank With The The Same People That Hold their Deposit Account. And The Larger Banks Certainly Have An Advantage.
EMIL J KOVACH JR