The acquisition won’t include any physical assets, and the only financial assets are cash associated with the deposits, Goldman Sachs said.
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GE Capital chief executive, Keith Sherin, remarking on this deal said, “This transaction is another key step of our work in reducing the size and complexity of GE Capital”.
Goldman Sachs Group Inc (NYSE:GS) has been a beneficiary of GE’s restructuring plans. Company shares. In the past six months, there is a change of -17.64% in the total insider ownership. Goldman Sachs Group Inc (GS) has a price to earnings ratio of 11.91 versus Financial sector average of 18.01.
The transaction will help Goldman advance its strategy of becoming less reliant on capital markets, in line with regulators’ push for investment banks to fund more of their assets with deposits from consumers as this means of funding is less likely to disappear due to their federal insurance. Eventually, the division’s incapability to boost margins and its negative impact on the rest of the company led CEO Immelt to commence a landmark staggered sale of GE Capital operations worth over $200 billion, over a period of two years. Zacks upgraded shares of Goldman Sachs from a “hold” rating to a “buy” rating and set a $237.00 target price for the company in a research note on Wednesday, July 22nd. This is down from average of 2.29M shares.
The stance on Goldman Sachs stock is comparatively neutral. The 12-month consensus target price on Goldman Sachs stock is $220.08. Equities analysts predict that Goldman Sachs BDC will post $1.95 EPS for the current year.
Out of 22 brokers covering Goldman Sachs, 5 rate it a Buy, 20 indicate a Hold while 2 suggest a Sell.
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Historically, Goldman has been an investment bank catering nearly entirely to corporate clients, with a small business offering private banking services to the wealthy elite. The Company has four business segments. The Firm is a worldwide investment banking, securities and investment management company providing you with a range of financial services to a diversified customer base including financial institutions, corporations, Governments and people. In fact, following the financial crisis of 2008, Goldman Sachs has considerably revamped efforts to become more accessible to the public, and transform its identity from an exclusive to a mainstream bank.
