Goldman Sachs has agreed to buy GE Capital Bank's online deposit platform, which has about $16 billion of deposits. Financial terms have not been disclosed.
The deal, still subject to regulatory approval, will see the Goldman Sachs Bank USA subsidiary assume approximately $8 billion in online deposit accounts and $8 billion in brokered certificates of deposit.
Goldman says that it will offer employment to "substantially all" of GE Capital Bank's staffers supporting the online platform.
Liz Beshel Robinson, treasurer, Goldman Sachs Group, says: "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."