Goldman Sachs Group agreed to acquire an online banking unit from General Electric that has about $16 billion of deposits.
Goldman Sachs's banking subsidiary will take on $8 billion in online deposits and $8 billion of brokered certificates of deposit in the agreement with GE Capital Bank, New York-based Goldman Sachs said Thursday in a statement. Terms weren't disclosed for the purchase, which is subject to regulatory approval.
Goldman Sachs has boosted its reliance on deposit funding since converting to a bank during the financial crisis. The firm's deposits were $89 billion at the end of June, more than triple the amount it had at the end of 2008.
"This transaction achieves greater funding diversification and strengthens the liquidity profile of GS Bank by providing an additional deposit-gathering channel," Liz Beshel Robinson, Goldman Sachs's treasurer, said in the statement.
The acquisition won't include any physical assets, and the only financial assets are cash associated with the deposits, Goldman Sachs said. The investment bank will offer jobs to "substantially all" of the unit's employees.