Goldman Sachs is looking for a new pool of cash to plunder, and this time the firm is setting its sights slightly "lower" than normal. As revenues continue to plummet, Goldman is now looking to generate a new revenue stream with clients that are "mass affluent", or have less than the estimated $50 million average account size their current clients have.
As Reuters reports, the firm is creating a strategy that will involve partnering with small brokerages and wealth management firms to lend money to their clients. The strategy is set to enable the vampire squid to do more traditional lending, as well as margin lending to a larger much less wealthy client base. Goldman has tripled loans to its own private wealth clients according to Reuters, having $45 billion in loan receivables at the end of 2015.
The new strategy comes just after the Fed approved Goldman's purchase of deposits from GE Capital Bank, further increasing its banking operations.
"We'll want people who previously didn't know where we were." Blankfein said last year, speaking of customers unfamiliar with the firm.
We suspect those clients who previously didn't know the vampire squid will be very well acquainted with them in short order.
via http://ift.tt/1NPnuUz Tyler Durden