Page 61 - MIN ECEM

BUSINESS Wednesday 19 July 2017
A25

Wall Street’s Goldman Sachs moves quietly into Main Street

By KEN SWEET officer and CEO of GS man’s second-quarter the new consumer bank- The consumer products
AP Business Writer Bank. results posted Tuesday. ing division as a way for Goldman is offering are
NEW YORK (AP) — More ho- Goldman’s retail banking It earned $1.63 billion, or the firm to expand into pretty conventional. An
meowner, less hedge fund business is less than two $3.95 a share, basically un- businesses it traditionally online savings account
titan. Goldman Sachs, long years old and tiny com- changed from a year ear- wasn’t involved in. But how with its GS Bank requires no
known for its super-rich cli- minimum opening deposit
ents and well-connected and pays an interest rate
executives, is starting to of 1.20 percent.
act a lot more like a neigh- Looking for longer-term
borhood bank. savings? Goldman offers
The most Wall Street of Wall CDs with terms from six
Street firms really wants months to six years, paying
people to start thinking as much as 2.30 percent.
about it the next time they And fixed-rate, no-fee per-
need to open a bank ac- sonal loans are available
count or borrow money. through Marcus by Gold-
It’s paying above-average man Sachs.
rates on online savings ac- Firm executives aren’t say-
counts and offering that ing what future products
stodgiest of investments, they may offer. Analysts
good old-fashioned CDs. say it’s not unreasonable to
Personal loans are avail- think Goldman may con-
able through its Marcus sider checking accounts
brand, a friendlier refer- and student loans. Just
ence to co-founder Mar- don’t expect Goldman to
cus Goldman. be opening branches any-
For a firm that never had A screen at a trading post on the floor of the New York Stock Exchange is juxtaposed with the time soon, or ever.
a reason to advertise, Goldman Sachs booth. Goldman Sachs, the most Wall Street of Wall Street firms, is pushing quietly “Whatever size it’s going to
Goldman now runs Mar- into the realm of consumer banking. be, it’s going to be entirely
cus commercials with the (AP Photo/Richard Drew) a virtual business,” said Mi-
casual tagline: “Debt hap- pared to the overall size lier. The division that con- well Goldman’s brand and chael Wong, an analyst at
pens.” of the firm. The company tains its trading desks had image might appeal in the Morningstar.
During most of its nearly hasn’t yet even broken it revenue of $3.05 billion, consumer business remains Goldman’s path to Main
148-year history, the main out as a business line in its down 17 percent. Fixed in- to be seen. Street has its origins in the fi-
way to do business with quarterly financial state- come, currency and com- “I had a few readers tell me nancial meltdown of 2008.
Goldman was to be in- ments because of its size. modity trading revenue that they had no intention At the height of the crisis,
credibly wealthy or a CEO And Goldman isn’t back- fell 40 percent, and Chief to do business with Gold- Goldman and its rival Mor-
at a major company. ing away from its tradition- Financial Officer Martin man, but those comments gan Stanley — both trying
That’s changing. al strengths: trading and Chavez said its commodi- were pretty limited,” said to avoid the bankruptcy
“We want to grow a robust advising. ties division had its worst Ken Tumin with DepositAc- fate of Lehman Brothers
consumer banking busi- Trading is inherently a vola- quarter since the firm went counts.com, a review site — converted from invest-
ness,” said Stephen Scherr, tile business, and a quiet public in 1999. for savings accounts and ment banks to commercial
Goldman’s chief strategy market weighed on Gold- Goldman executives see other bank products. banks.q

UnitedHealth 2Q profit surges as ACA participation shrinks

By TOM MURPHY market. The insurer had states this year. United from the Optum segment, share, and total revenue
AP Health Writer expanded quickly into took a $1.8 billion revenue which provides pharmacy rose nearly 8 percent to
UnitedHealth Group’s the law’s state-based in- hit in the second quarter benefits management and $50.05 billion.q
second-quarter earnings surance exchanges and because of that pullback technology services and
soared as the nation’s larg- was selling coverage in 34 and a pause in a health in- also operates clinics and
est insurer dove deeper states last year. surance tax. doctor’s offices.
into government-funded But UnitedHealth and other But that was more than off- Overall, UnitedHealth’s
health coverage like Medi- insurers struggled with a set by top line gains of $2.5 earnings jumped 30 per-
care and Medicaid and sicker-than-expected pa- billion from the insurer’s cent to $2.28 billion in the
continued to distance itself tient population and other Medicare and retirement second quarter. Adjusted
from the turbulent Afford- problems on the exchang- business and $2 billion earnings totaled $2.46 per
able Care Act insurance es, which provided a small
exchanges. slice of their business. Last
The insurer also said Tues- summer, UnitedHealth re-
day that it drew $1.52 billion ported that losses from
in operating earnings from that business had come in
its rapidly growing Optum about $200 million higher
business, which doesn’t sell than expected, and CEO
health insurance. Stephen Hemsley promised
The latest Republican push analysts that his company
to dismantle and replace would have no meaningful
the Affordable Care Act exposure to the exchanges
collapsed Monday in the this year.
Senate, more than a year He kept his word. The in-
after UnitedHealth said it surer is selling coverage on
had had enough of that exchanges in only three