cancel
Showing results for 
Search instead for 
Did you mean: 
     
Highlighted
Participant ○○

GS interested in acquiring WFC rumor

Any opinion on the rumor GS is interested in acquiring WFC?

Personally, I think there would be regulatory issues with two big banks merging. 
Also, WFC is very large company to be gobble up (100b+) and  it would be difficult to be purchased strictly with cash/debt. 

What other acquisition targets would GS be looking at other than WFC?

0 Kudos
7 Replies
Highlighted
Frequent Contributor

Re: GS interested in acquiring WFC rumor

Both GS and MS were approved as bank holding co in 2008 but they didn't do much with it. GS did start online Marcus by Goldman that is tiny. Names floating are WFC, PNC, USB, etc. But WFC is unlikely as it is already limited by 10% national deposit cap plus other constraints imposed on it as punishment for its misdeeds - UNLESS the Government wants that to happen for some reason.

YBB
0 Kudos
Highlighted
Participant ○○

Re: GS interested in acquiring WFC rumor


@yogibearbull wrote:

 But WFC is unlikely as it is already limited by 10% national deposit cap plus other constraints imposed on it as punishment for its misdeeds - 


I read the same thing but I don't believe the 10% cap applies because GS would be acquiring WFC not WFC (who has the 10% cap) would be acquiring GS. I don't believe GS has a 10% cap.

0 Kudos
Highlighted
Participant ○○

Re: GS interested in acquiring WFC rumor

And WFC stock is falling today on buyout rumor?

0 Kudos
Highlighted
Participant ○○

Re: GS interested in acquiring WFC rumor


@waffle wrote:

And WFC stock is falling today on buyout rumor?


WFC was UP 7% yesterday on the buyout rumor.
Its been going down for a long time now.
Plus I said it wasn't likely they would be an acquisition target...

0 Kudos
Highlighted
Frequent Contributor

Re: GS interested in acquiring WFC rumor


@BigTom wrote:

@yogibearbull wrote:

 But WFC is unlikely as it is already limited by 10% national deposit cap plus other constraints imposed on it as punishment for its misdeeds - 


I read the same thing but I don't believe the 10% cap applies because GS would be acquiring WFC not WFC (who has the 10% cap) would be acquiring GS. I don't believe GS has a 10% cap.


See more about 10% deposit cap rule and when the Government lets banks violate it.

https://13bankers.com/2010/03/18/banks-and-the-10-deposit-cap/

https://ilsr.org/rule/market-share-caps/

YBB
Highlighted
Frequent Contributor

Re: GS interested in acquiring WFC rumor


@yogibearbull wrote:

Both GS and MS were approved as bank holding co in 2008 but they didn't do much with it. GS did start online Marcus by Goldman that is tiny. Names floating are WFC, PNC, USB, etc. But WFC is unlikely as it is already limited by 10% national deposit cap plus other constraints imposed on it as punishment for its misdeeds - UNLESS the Government wants that to happen for some reason.



 As a condition to receiving TARP loans in 2008 both MS and GS filed to register as commercial banks subject to Regulatory oversight by the federal reserve including leverage limits and minimum reserves. GS chose to be regulated by NYS banking dept and opened a single branch. MS created MS Bank sited in Utah which provides personal and commercial banking services throughout the US. I believe MS is charted as a federal bank.

Fed will never allow any of the largest US banks to merge with each other because of the concentration of risk that would result. If the need arose to save a Large commercial bank, the FDIC would step in, take over the bank, sell its business assets that affected customers to another bank for a fraction of its value and allow the rest of the business to file for bankruptcy. Selling assets subject to depositary insurance To another FDIC bank For a small payment avoids FDIC having to pay out $Bs in cash It doesn’t have to depositors whose assets are insured up to 250k.

This is what happened in Sept 2008 when WAMU became insolvent because it made too many bad home mortgage loans which resulted in insolvency. FDIC swooped in and put WAMU into receivership, sold its $300B home mortgage portfolio and bank deposit assets to JPM for $5B and forced the rest of WAMU To file for bankruptcy which resulted in holders of WAMU stock getting 0.

0 Kudos
Highlighted
Frequent Contributor

Re: GS interested in acquiring WFC rumor

New is that GS is buying Folio   https://www.barrons.com/articles/why-is-goldman-sachs-buying-folio-financial-51589569223?mod=RTA

"Goldman Sachs  has a lot of different businesses, but until now the Wall Street giant didn’t have a custody business for RIA firms.....That changes with its planned purchase of Folio Financial, which Folio’s CEO disclosed in a letter to customers on Thursday . The acquisition would make Goldman a direct custody competitor to the dominant firms in the space: Charles Schwab , Fidelity, and BNY Mellon’s Pershing. (Schwab is in the process of acquiring TD Ameritrade , an important custodian for smaller RIAs).....Folio Financial, launched 20 years ago, does lots of things. In addition to being an RIA custodian, it operates an online brokerage, develops technology (including robo-advisor and fractional trading systems), and owns First Affirmative, an advisor network serving the ESG community....."

YBB
0 Kudos
Announcements