{"id":71784,"date":"2023-10-12T08:42:42","date_gmt":"2023-10-12T12:42:42","guid":{"rendered":"https:\/\/ifintechworld.com\/investing\/goldman-sachs-sheds-greensky-lending-platform-but-still-faces-lack-of-low-cost-deposits-analyst-says\/"},"modified":"2023-10-12T08:42:45","modified_gmt":"2023-10-12T12:42:45","slug":"goldman-sachs-sheds-greensky-lending-platform-but-still-faces-lack-of-low-cost-deposits-analyst-says","status":"publish","type":"post","link":"https:\/\/ifintechworld.com\/?p=71784","title":{"rendered":"Goldman Sachs sheds GreenSky lending platform but still faces lack of low-cost deposits, analyst says"},"content":{"rendered":"
\n

Goldman Sachs Group Inc. marked an end to a painful couple of years with the sale of its GreenSky consumer-lending unit to a private-equity consortium led by Sixth Street.<\/p>\n

Goldman Sachs
\n GS,
\n -0.56%<\/bg-quote>
\n did not disclose the sale price of GreenSky, a service provider for consumer loans for healthcare and home improvement that it acquired for $1.7 billion in 2021.<\/p>\n

\n

Times have changed drastically since then, and shares of many financial-services companies have fallen sharply, dragging down deal prices for mergers and acquisitions of specialty consumer-lending and fintech companies in GreenSky\u2019s overall universe. <\/p>\n

Upstart Holdings Inc.\u2019s stock
\n UPST,
\n -1.36%<\/bg-quote>
\n was trading above $200 a share for most of 2021 and is now below $30. Block Inc.\u2019s stock
\n SQ,
\n +1.50%<\/bg-quote>
\n is down 26% so far this year to around $47 a share, after trading well above $200 a share in 2021. Shares of Opendoor Technologies Inc.
\n OPEN,
\n +0.75%<\/bg-quote>
\n are up 131% this year, but that is still a fraction of their $20 price from thee years ago. <\/p>\n

Christopher Marinac, an analyst at Janney Montgomery Scott, said that Goldman is \u201cgetting rid of a problem\u201d with the sale of GreenSky, but that bank still faces the challenge of building up a large pool of low-cost deposits for any lending activities.<\/p>\n

\u201cThere\u2019s not much there in the way of core deposits from cheap sources,\u201d Mariniac said.<\/p>\n

While Goldman runs a large wealth-management business, its well-heeled customers don\u2019t park their funds in classic savings accounts paying low interest, which is the case at other banks, he said.<\/p>\n

Goldman Sachs disclosed a 4.2% interest-bearing-deposit cost in the second quarter, compared with 1.23% for Bank of America Corp.
\n BAC,
\n +0.04%<\/bg-quote>,<\/span>
\n 1.61% for JPMorgan Chase & Co.
\n JPM,
\n +0.34%<\/bg-quote>
\n and 1.13% for Wells Fargo & Co.
\n WFC,
\n -0.33%<\/bg-quote>,<\/span>
\n according to data compiled by Janney.<\/p>\n

Goldman Sachs\u2019s stock fell 0.6% in regular trading on Wednesday. The stock is down 25.5% in 2023, compared with a 2% year-to-date increase by the Dow Jones Industrial Average
\n DJIA.<\/span>
\n Goldman Sachs is a component of the 30-stock index. <\/p>\n

Along with Sixth Street, buyers of GreenSky include KKR & Co.
\n KKR,
\n +1.66%<\/bg-quote>,<\/span>
\n Bayview Asset Management and CardWorks, which is a privately held consumer-finance lender and servicer based in Woodbury, N.Y. <\/p>\n

As part of the deal, Pimco is providing support for an asset acquisition. CPP Investments has agreed to finance the deal, which is expected to close in early 2024.<\/p>\n

Goldman Sachs said the sale of GreenSky will impact its third-quarter earnings by 19 cents a share, or about $62.6 million based on the number of outstanding shares of the investment bank. <\/p>\n

Goldman is currently expected to earn $5.86 a share when it provides its quarterly update on Oct. 17. <\/p>\n

The impact of 19 cents a share reflects an increase in operating expenses for the write-down of intangibles, as well as a drop in net revenue related to marks on GreenSky\u2019s loan portfolio and an increase in taxes, the bank said. This was largely offset by a release of loan reserves reflected in provision for credit losses, the bank said.<\/p>\n

Goldman Chief Executive David Solomon said the deal \u201cdemonstrates our continued progress in narrowing the focus of our consumer business,\u201d according to a statement.\u00a0<\/p>\n

The investment bank acquired GreenSky at time when it was building out its Marcus consumer-banking unit. Early this year, however, Goldman made a U-turn on the effort and disclosed a $3 billion loss on its consumer business, as well as plans to divest GreenSky.<\/p>\n

The bank also realigned its businesses into three main units: Global Banking & Markets, Asset & Wealth Management and Platform Solutions. <\/p>\n

Criticism of Solomon started to build this year and spilled into media reports, including a Wall Street Journal article that said a war had broken out between partners at Goldman Sachs.<\/p>\n

Also read: <\/strong>Goldman Sachs CEO David Solomon says he doesn\u2019t recognize \u2018caricature\u2019 that critics have painted of him<\/p>\n<\/p><\/div>\n<\/div>\n

Read the full article here<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

Goldman Sachs Group Inc. marked an end to a painful couple of years with the sale of its GreenSky consumer-lending unit to a private-equity consortium led by Sixth Street. Goldman Sachs GS, -0.56% did not disclose the sale price of GreenSky, a service provider for consumer loans for healthcare and home improvement that it acquired […]<\/p>\n","protected":false},"author":1,"featured_media":71785,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"video","meta":{"footnotes":""},"categories":[239],"tags":[83],"class_list":["post-71784","post","type-post","status-publish","format-video","has-post-thumbnail","hentry","category-investing","tag-featured","post_format-post-format-video"],"yoast_head":"\nGoldman Sachs sheds GreenSky lending platform but still faces lack of low-cost deposits, analyst says | iFintechWorld<\/title>\n<meta name=\"description\" content=\"Goldman Sachs Group Inc. marked an end to a painful couple of years with the sale of its GreenSky consumer-lending unit to a private-equity consortium led\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/ifintechworld.com\/?p=71784\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Goldman Sachs sheds GreenSky lending platform but still faces lack of low-cost deposits, analyst says | iFintechWorld\" \/>\n<meta property=\"og:description\" content=\"Goldman Sachs Group Inc. marked an end to a painful couple of years with the sale of its GreenSky consumer-lending unit to a private-equity consortium led\" \/>\n<meta property=\"og:url\" content=\"https:\/\/ifintechworld.com\/?p=71784\" \/>\n<meta property=\"og:site_name\" content=\"iFintechWorld\" \/>\n<meta property=\"article:published_time\" content=\"2023-10-12T12:42:42+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2023-10-12T12:42:45+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/ifintechworld.com\/wp-content\/uploads\/2023\/10\/1697114563_social.jpeg\" \/>\n\t<meta property=\"og:image:width\" content=\"1280\" \/>\n\t<meta property=\"og:image:height\" content=\"640\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"News Room\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"News Room\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"3 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\/\/ifintechworld.com\/?p=71784#article\",\"isPartOf\":{\"@id\":\"https:\/\/ifintechworld.com\/?p=71784\"},\"author\":{\"name\":\"News Room\",\"@id\":\"https:\/\/ifintechworld.com\/#\/schema\/person\/6224724fd4116361255b179dc5c70b61\"},\"headline\":\"Goldman Sachs sheds GreenSky lending platform but still faces lack of low-cost deposits, analyst says\",\"datePublished\":\"2023-10-12T12:42:42+00:00\",\"dateModified\":\"2023-10-12T12:42:45+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\/\/ifintechworld.com\/?p=71784\"},\"wordCount\":642,\"commentCount\":0,\"publisher\":{\"@id\":\"https:\/\/ifintechworld.com\/#organization\"},\"keywords\":[\"Featured\"],\"articleSection\":[\"Investing\"],\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"CommentAction\",\"name\":\"Comment\",\"target\":[\"https:\/\/ifintechworld.com\/?p=71784#respond\"]}]},{\"@type\":\"WebPage\",\"@id\":\"https:\/\/ifintechworld.com\/?p=71784\",\"url\":\"https:\/\/ifintechworld.com\/?p=71784\",\"name\":\"Goldman Sachs sheds GreenSky lending platform but still faces lack of low-cost deposits, analyst says | iFintechWorld\",\"isPartOf\":{\"@id\":\"https:\/\/ifintechworld.com\/#website\"},\"datePublished\":\"2023-10-12T12:42:42+00:00\",\"dateModified\":\"2023-10-12T12:42:45+00:00\",\"description\":\"Goldman Sachs Group Inc. marked an end to a painful couple of years with the sale of its GreenSky consumer-lending unit to a private-equity consortium led\",\"breadcrumb\":{\"@id\":\"https:\/\/ifintechworld.com\/?p=71784#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\/\/ifintechworld.com\/?p=71784\"]}]},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\/\/ifintechworld.com\/?p=71784#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"Home\",\"item\":\"https:\/\/ifintechworld.com\/\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"Goldman Sachs sheds GreenSky lending platform but still faces lack of low-cost deposits, analyst says\"}]},{\"@type\":\"WebSite\",\"@id\":\"https:\/\/ifintechworld.com\/#website\",\"url\":\"https:\/\/ifintechworld.com\/\",\"name\":\"Repay Down\",\"description\":\"Latest Personal Finance News, Tips and Updates\",\"publisher\":{\"@id\":\"https:\/\/ifintechworld.com\/#organization\"},\"potentialAction\":[{\"@type\":\"SearchAction\",\"target\":{\"@type\":\"EntryPoint\",\"urlTemplate\":\"https:\/\/ifintechworld.com\/?s={search_term_string}\"},\"query-input\":\"required name=search_term_string\"}],\"inLanguage\":\"en-US\"},{\"@type\":\"Organization\",\"@id\":\"https:\/\/ifintechworld.com\/#organization\",\"name\":\"Repay Down\",\"url\":\"https:\/\/ifintechworld.com\/\",\"logo\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/ifintechworld.com\/#\/schema\/logo\/image\/\",\"url\":\"https:\/\/ifintechworld.com\/wp-content\/uploads\/2023\/04\/rep-logo-dark.png\",\"contentUrl\":\"https:\/\/ifintechworld.com\/wp-content\/uploads\/2023\/04\/rep-logo-dark.png\",\"width\":558,\"height\":90,\"caption\":\"Repay Down\"},\"image\":{\"@id\":\"https:\/\/ifintechworld.com\/#\/schema\/logo\/image\/\"}},{\"@type\":\"Person\",\"@id\":\"https:\/\/ifintechworld.com\/#\/schema\/person\/6224724fd4116361255b179dc5c70b61\",\"name\":\"News Room\",\"image\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/ifintechworld.com\/#\/schema\/person\/image\/\",\"url\":\"https:\/\/ifintechworld.com\/wp-content\/uploads\/2023\/04\/avatar_user_1_1682606986-96x96.png\",\"contentUrl\":\"https:\/\/ifintechworld.com\/wp-content\/uploads\/2023\/04\/avatar_user_1_1682606986-96x96.png\",\"caption\":\"News Room\"},\"sameAs\":[\"https:\/\/ifintechworld.com\"],\"url\":\"https:\/\/ifintechworld.com\/?author=1\"}]}<\/script>\n<!-- \/ Yoast SEO plugin. -->","yoast_head_json":{"title":"Goldman Sachs sheds GreenSky lending platform but still faces lack of low-cost deposits, analyst says | iFintechWorld","description":"Goldman Sachs Group Inc. marked an end to a painful couple of years with the sale of its GreenSky consumer-lending unit to a private-equity consortium led","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/ifintechworld.com\/?p=71784","og_locale":"en_US","og_type":"article","og_title":"Goldman Sachs sheds GreenSky lending platform but still faces lack of low-cost deposits, analyst says | iFintechWorld","og_description":"Goldman Sachs Group Inc. marked an end to a painful couple of years with the sale of its GreenSky consumer-lending unit to a private-equity consortium led","og_url":"https:\/\/ifintechworld.com\/?p=71784","og_site_name":"iFintechWorld","article_published_time":"2023-10-12T12:42:42+00:00","article_modified_time":"2023-10-12T12:42:45+00:00","og_image":[{"width":1280,"height":640,"url":"https:\/\/ifintechworld.com\/wp-content\/uploads\/2023\/10\/1697114563_social.jpeg","type":"image\/jpeg"}],"author":"News Room","twitter_card":"summary_large_image","twitter_misc":{"Written by":"News Room","Est. reading time":"3 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"Article","@id":"https:\/\/ifintechworld.com\/?p=71784#article","isPartOf":{"@id":"https:\/\/ifintechworld.com\/?p=71784"},"author":{"name":"News Room","@id":"https:\/\/ifintechworld.com\/#\/schema\/person\/6224724fd4116361255b179dc5c70b61"},"headline":"Goldman Sachs sheds GreenSky lending platform but still faces lack of low-cost deposits, analyst says","datePublished":"2023-10-12T12:42:42+00:00","dateModified":"2023-10-12T12:42:45+00:00","mainEntityOfPage":{"@id":"https:\/\/ifintechworld.com\/?p=71784"},"wordCount":642,"commentCount":0,"publisher":{"@id":"https:\/\/ifintechworld.com\/#organization"},"keywords":["Featured"],"articleSection":["Investing"],"inLanguage":"en-US","potentialAction":[{"@type":"CommentAction","name":"Comment","target":["https:\/\/ifintechworld.com\/?p=71784#respond"]}]},{"@type":"WebPage","@id":"https:\/\/ifintechworld.com\/?p=71784","url":"https:\/\/ifintechworld.com\/?p=71784","name":"Goldman Sachs sheds GreenSky lending platform but still faces lack of low-cost deposits, analyst says | iFintechWorld","isPartOf":{"@id":"https:\/\/ifintechworld.com\/#website"},"datePublished":"2023-10-12T12:42:42+00:00","dateModified":"2023-10-12T12:42:45+00:00","description":"Goldman Sachs Group Inc. marked an end to a painful couple of years with the sale of its GreenSky consumer-lending unit to a private-equity consortium led","breadcrumb":{"@id":"https:\/\/ifintechworld.com\/?p=71784#breadcrumb"},"inLanguage":"en-US","potentialAction":[{"@type":"ReadAction","target":["https:\/\/ifintechworld.com\/?p=71784"]}]},{"@type":"BreadcrumbList","@id":"https:\/\/ifintechworld.com\/?p=71784#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"Home","item":"https:\/\/ifintechworld.com\/"},{"@type":"ListItem","position":2,"name":"Goldman Sachs sheds GreenSky lending platform but still faces lack of low-cost deposits, analyst says"}]},{"@type":"WebSite","@id":"https:\/\/ifintechworld.com\/#website","url":"https:\/\/ifintechworld.com\/","name":"Repay Down","description":"Latest Personal Finance News, Tips and Updates","publisher":{"@id":"https:\/\/ifintechworld.com\/#organization"},"potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/ifintechworld.com\/?s={search_term_string}"},"query-input":"required name=search_term_string"}],"inLanguage":"en-US"},{"@type":"Organization","@id":"https:\/\/ifintechworld.com\/#organization","name":"Repay Down","url":"https:\/\/ifintechworld.com\/","logo":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/ifintechworld.com\/#\/schema\/logo\/image\/","url":"https:\/\/ifintechworld.com\/wp-content\/uploads\/2023\/04\/rep-logo-dark.png","contentUrl":"https:\/\/ifintechworld.com\/wp-content\/uploads\/2023\/04\/rep-logo-dark.png","width":558,"height":90,"caption":"Repay Down"},"image":{"@id":"https:\/\/ifintechworld.com\/#\/schema\/logo\/image\/"}},{"@type":"Person","@id":"https:\/\/ifintechworld.com\/#\/schema\/person\/6224724fd4116361255b179dc5c70b61","name":"News Room","image":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/ifintechworld.com\/#\/schema\/person\/image\/","url":"https:\/\/ifintechworld.com\/wp-content\/uploads\/2023\/04\/avatar_user_1_1682606986-96x96.png","contentUrl":"https:\/\/ifintechworld.com\/wp-content\/uploads\/2023\/04\/avatar_user_1_1682606986-96x96.png","caption":"News Room"},"sameAs":["https:\/\/ifintechworld.com"],"url":"https:\/\/ifintechworld.com\/?author=1"}]}},"amp_enabled":true,"_links":{"self":[{"href":"https:\/\/ifintechworld.com\/index.php?rest_route=\/wp\/v2\/posts\/71784","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/ifintechworld.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/ifintechworld.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/ifintechworld.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/ifintechworld.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=71784"}],"version-history":[{"count":1,"href":"https:\/\/ifintechworld.com\/index.php?rest_route=\/wp\/v2\/posts\/71784\/revisions"}],"predecessor-version":[{"id":71786,"href":"https:\/\/ifintechworld.com\/index.php?rest_route=\/wp\/v2\/posts\/71784\/revisions\/71786"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/ifintechworld.com\/index.php?rest_route=\/wp\/v2\/media\/71785"}],"wp:attachment":[{"href":"https:\/\/ifintechworld.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=71784"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/ifintechworld.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=71784"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/ifintechworld.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=71784"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}