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Goldman Sachs opens up to mass market

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Goldman Sachs is opening up to the mass market by offering online savings accounts to anyone with more than $1.

The Financial Times reports the bank launched GSBank.com last week, via a platform it took over by buying a $16bn (£11bn) deposit book from GE Capital.

Goldman Sachs chief strategy officer Stephen Scherr says the goal is to increase the sources of funding for GS Bank.

Until now, the Goldman arm has concentrated on wholesale funding and bulk sums that banks buy from brokers for high interest rates.

The bank is offering annual interest rates of 1.05 per cent on its savings accounts.

Goldman acquired 145,000 retail customers with the deal, and now wants more.

The move breaks 150 years of tradition for the bank to offer its services exclusively to the wealthy.

Generally weak Q1 results from large US banks have shown their investment banking arms are struggling with competition and regulation.

Goldman posted Q1 returns on equity of 6.4 per cent for the first three months of 2016, the lowest for four years.

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  1. You can see why they are doing this. Profits have fallen 56% in the first three months of this year. They are practically skint – the only made a paltry £1.2 billion in the period.

    So now they are turning to the great unwashed. Well at least as ar as cash deposits are concerned (so far). Will they live to regret this move? Well I wouldn’t be at all surprised if it bits them in the bum. Their model of catering for the better off stood them in good stead for over 100 years. Marcus and Sam will be spinning in their graves.

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