Goldman Sachs Bank USA has agreed to buy GE Capital Bank’s (GECB) online deposit platform having $16bn in deposits.
Under the deal, Goldman Sachs will acquire about $8bn in online deposit accounts and $8bn in brokered certificates of deposit from GECB.
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Goldman Sachs is expected to employ almost all of GECB’s employees supporting the online deposit platform, with GECB president Scott Roberts expected to join Goldman Sachs to manage the platform.
The transaction, which is subject to regulatory approval, does not include acquisition of physical assets.
The Goldman Sachs Group treasurer Liz Beshel Robinson remarked: "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."
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By GlobalDataFollowing the closing of the takeover, GE plans to wind down the remaining operations of GE Capital to create a simpler and more valuable company.
Commenting on the latest transaction, GE Capital chairman and CEO Keith Sherin said: "As we work to reduce the size and complexity of GE Capital, this transaction is another key step.
"It advances GE Capital’s new strategic direction by facilitating closure of one of our two U.S. bank charters, which we believe will help us become less systemically important."
