Goldman Sachs gets caught short, turns to Main Street to fund their money making operation...
Investment-banking powerhouse Goldman Sachs Inc. is doing something that would have been unthinkable before the financial crisis.
The banker to the biggest companies around the world is offering online savings accounts to ordinary Americans with as little as $1 to deposit, as it moves to diversify its funding base and satisfy regulators.
The Federal Deposit Insurance Corp. is scheduled to review new rules on the amount of liquidity lenders are obliged to have on hand at a meeting Tuesday. The net stable funding ratio will require all banks to reduce their reliance on short-term funding that can be volatile, in favor of more stable long-term funding that is more expensive. The new rules are part of a broader effort to prevent a repeat of the 2008 crisis.
In a sign that it is serious about attracting depositors, Goldman is offering a 1.05% annual interest rate on deposits, which is far higher than rates currently available at other big U.S. banks.
http://www.marketwatch.com/story/goldman-sachs-is-doing-something-that-would-have-been-unthinkable-before-2008-2016-04-25
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