Goldman Sachs changes jurisdiction
Reflecting the market turmoil that has beset the US, investment bank Goldman Sachs Group has moved to place itself under the jurisdiction of the Federal Reserve.
The group said that the move, formalised this week, would make it the fourth largest bank holding company to be regulated by the Federal Reserve.
The financial services group said that in recent weeks, particularly in light of market developments, it had discussed with the Federal Reserve its intention of being regulated as a Bank Holding Company on the basis of it being “in the best interests of protecting and growing our franchise across our diverse range of businesses”.
The group acknowledged that the market viewed oversight by the Federal Reserve and the ability to source insured bank deposits as providing a greater degree of safety and soundness.
Commenting on the move, Goldman Sachs chief executive and chairman Lloyd C. Blankfein said that, while accelerated by market sentiment, the decision to be regulated by the Federal Reserve was based on the recognition that such regulation provided its members with full prudential supervision and access to permanent liquidity and funding.
AUTHOR
Mike Taylor
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