The FINANCIAL — Goldman Sachs Bank USA announced on August 13 it has entered into an agreement with GE Capital Bank to acquire GECB’s online deposit platform and assume GECB’s approximately $8 billion in online deposit accounts and $8 billion in brokered certificates of deposit for an expected total of approximately $16 billion of deposits at closing.
GS Bank will acquire no financial assets in the transaction other than cash associated with the deposit liabilities, according to Goldman Sachs.
“This transaction achieves greater funding diversification and strengthens the liquidity profile of GS Bank by providing an additional deposit gathering channel. The establishment of this channel represents the advancement of a key funding objective for the firm,” said Liz Beshel Robinson, Treasurer of The Goldman Sachs Group, Inc.
Scott Roberts, President of GECB, said: “We are pleased to transition our depositor relationships to GS Bank, a large, stable institution with a focus on customer service. I am personally excited at the prospect of joining GS Bank, along with my team, to work towards a seamless transition of depositor accounts and to assist in managing the platform going forward.” “We look forward to welcoming and serving GECB’s online deposit customers at GS Bank with the high standard of service they have come to expect. We also look forward to working with our new colleagues from GECB,” said Esta Stecher, Chief Executive Officer of GS Bank.
As part of the transaction, GS Bank will extend offers of employment to substantially all of GECB’s employees dedicated to supporting the online deposit platform. As GECB’s deposit platform is online only, the transaction does not include the purchase of any physical assets.
Closing of the transaction is subject to regulatory approval.