Goldman Sachs Group Inc. has made a move to test the waters of the consumer investment market. Inside sources have suggested that the company plans to enter into a partnership with a Chicago based company, Incapital, in order to start selling municipal bonds to individual investors. Goldman joins companies such as J.P. Morgan Chase and Citigroup in the retail-brokerage networks that distribute bonds directly to the public.
While Goldman Sachs Group Inc. is not generally considered a major player in the consumer banking industry, this deal with Incapital shows Goldman's increased desire for versatility in the recovering economy. The bank will become more visible to consumers by sharing "billions of dollars of products that our [Incapital's] customers would never see otherwise" (see article). This financial venture by Goldman Sachs effectively puts the company a step closer to the consumer banking market. While the company is not as involved as other major U.S. banks such as Bank of America, and Wells Fargo, this move into a consumer market could be just the beginning of a more involved relationship with the consumer banking industry.
-Justin Schaffer
WSJ Article: Goldman in Bond Deal
http://online.wsj.com/article/SB10001424052748703720004575478151808425876.html
I would not be surprise if Goldman Sachs sized a significant percentage of the market share on the consumer banking industry. As we have come to learn, they are too big to fail.
ReplyDeleteJustin,
ReplyDeleteAlthough this article is regarding individual investors, investing is not considered Consumer Banking because it's considered investing. But the analysis is very in-depth. Good job.