Goldman considering launching Internet bank

Goldman Sachs is reportedly considering rolling out an Internet bank that would seek deposits to fund a range of businesses. Many details about the possible bank have not been decided, but it likely would offer several savings products, sources said. An online push would be a small but integral part of Goldman's strategy.

As part of its transformation into a bank holding company, Goldman Sachs recruited Gerald Corrigan, formerly head of the Federal Reserve Bank of New York, to be its chairman. Speculation has been mounting about how Goldman will proceed, specifically whether it will acquire another bank to quickly build its deposit base or expand its deposits organically.

Bernstein Research analyst Brad Hintz said the bank-holding model would prove to be costly for Goldman Sachs and Morgan Stanley. Regulators will require the former investment banks to employ less leverage, maintain more liquidity, limit illiquid business commitments and tightly control counterparty risk, Hintz said.

more at http://www.ft.com/cms/s/0/434dc434-c0d6-11dd-b0a8-000077b07658.html