Goldman buys GE’s $16B in deposits

August 19 02:59 2015

Wall Street’s Goldman Sachs is helping GE whittle down its banking business by buying the firm’s $16 billion in online deposits, the companies said Thursday. The transaction includes $8 billion in online savings accounts and $8 billion in online certificates of deposit (CDs) and brokered CDs, the companies said.EPA FILE USA ECONOMY GOLDMAN SACHS EBF FINANCIAL & BUSINESS SERVICES USA NY

The deal, which is subject to regulatory approval, includes the software and technology used to operate the platform, as well as employees. Scott Roberts, president of GE Capital Bank, is expected to join Goldman’s banking unit to oversee the platform, GE said.

Earlier this year, GE announced plans to sell off the bulk of banking operations — a unit known as GE Capital — in an effort to simplify its business and focus on its industrial operations. It has already sold $26.5 billion in real-estate assets, for example, to Wells Fargo bank and private equity firm Blackstone.

Goldman Sachs, meanwhile, has been boosting its deposits business since it converted to a bank during the financial crisis. Its banking unit, Goldman Sachs Bank USA, boasted $89 billion in deposits at the end of June, up from $35.5 billion at the end of June 2009.