Most U.S. hedge funds aren't expecting another big stock market sell-off as more firms curb bets on volatility, according to Nomura.Marketsread more
More tit-for-tat tariffs in the U.S.-China trade war could set the global economy up for a recession, according to Morgan Stanley.Marketsread more
A sell-off in chip stocks intensified following a report that chipmakers are cutting ties with Huawei after the Trump administration's ban.Marketsread more
A series of tweets Monday marked the latest chapter in Trump's decadeslong effort to refute published reports that his previous financial problems have rendered him an...Politicsread more
President Trump stands a chance of creating a new economic world order in his China trade fight, says the chief economic advisor of Allianz.Economyread more
Sens. Mitch McConnell and Tim Kaine plan to introduce a bill Monday that would raise the minimum age to buy tobacco to 21 in hopes of curbing what regulators are calling an...Health and Scienceread more
Ford Motor said Monday that it is laying off about 7,000 salaried workers, about 10% of that global workforce, as part of a restructuring plan designed to save the No. 2...Autosread more
Silicon Valley argues that the public market investors focus too much on near-term profits — but investors have embraced money-losing biotech IPOs.Marketsread more
Restaurants are thinking outside the box to attract and retain talent. A report from TDn2K, a restaurant analytics firm, finds that employee vacancies are a major concern for...Restaurantsread more
Forty percent of customers will choose a center to shop at based solely on the food that's there, JLL found in a new study. And nearly 38% of people want healthy options when...Retailread more
Google announced Google Glass Enterprise Edition 2 on Monday, a new set of smart glasses that's catered toward businesses and costs $999. Google has focused on business use...Technologyread more
Goldman Sachs, known for financing mega-deals and servicing the ultra-wealthy, is now open to the general public. And its interest in the average American appears to be mutual as thousands of consumers have flocked to its new retail banking service.
The company bought GE Capital Bank's online deposit platform in a deal that closed in April.
GS Bank, as it is now known, remains fairly simple with an online-only format for establishing savings accounts and investing in CDs. But its rates are competitive — offering above 1 percent for online savings accounts when many others pay less.
Despite no marketing since the deal's signing, GS Bank has added $1 billion in new deposits. And it plans to expand its offerings with personal loans soon.
"We see an opportunity to serve a different customer set than we typically have served," said Stephen Scherr, CEO of GS Bank. "And we do it at a time when there is a lot of change in how banking is done with and for consumers."
Goldman is hoping to establish a new revenue source with this foray into retail banking as some of its more traditional streams have struggled amid volatile markets and increasing regulation. At the height of the financial crisis, Goldman Sachs converted itself into a bank holding company in part to access types of funding that were previously off limits to it.
Scherr said that the company sees itself as a competitor both to traditional consumer banks and to online startups. It benefits from the name recognition and business acumen of an established financial brand that most startups lack, without the cost of running a network of brick and mortar banks that some of its more established competitors face.
It's not the first time a major financial firm has expanded into online banking service, said Greg McBride, chief financial analyst at Bankrate.com, pointing to offerings from ING and American Express. Banks are just responding to consumers' preference to look online to find the best of anything, McBride said.
"Consumers aren't exclusively banking with whoever is located in their neighborhood," he said. "There's a tangible advantage to shopping around."