Goldman May Scoop Up Indymac Assets: Report

September 23, 2008 No Comments »


Just a day after converting from investment bank to bank holding company, Goldman Sachs is reportedly eyeing distressed assets in an effort to quickly build its new business as a depository institution.

One failed bank Goldman may target is Indymac Federal, which had more than $19 billion in deposits when the FDIC stepped in as conservator back in July.

A Goldman spokesman told it was interested in scooping up retail deposits and assets in the wholesale market, not by opening branches, and noted that Indymac assets, currently being offered by the FDIC, could be on their shopping list.

With banks failing left and right, the tally now up to 12 since the beginning of the year, and the problem bank list up to 117, the former investment bank will have plenty of options to sift through.

Late Sunday, Goldman Sachs and Morgan Stanley announced that the Federal Reserve Board approved their applications to become bank holding companies in an effort to provide stability to the under-pressure giants.

Shares of Goldman Sachs were down $6.19, or 5.13%, to $114.59 in early afternoon trading on Wall Street.

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