Goldman Sachs to cool UK Marcus expansion to avoid red tape
Goldman Sachs is planning to cool the UK expansion of its new retail bank Marcus as it seeks to avoid the stricter regulations big lenders face in Britain.
So-called ringfencing rules drawn up after the financial crisis mean banks with more than £25bn in customer deposits have to separate retail banking activities from their much-riskier investment operations.
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Top executives at Goldman are set to take their foot off the gas to prevent Marcus from crossing the threshold, according to the Sunday Telegraph.
The new retail bank, named after the US giant’s founder Marcus Goldman, is about halfway to the limit at present.
It is set to launch another UK marketing push for Marcus in the coming months after 50,000 Brits swarmed to the bank last year, attracted by a 1.5 per cent savings rate.
A source with knowledge of the plans said Goldman was “aware” of the £25bn limit, but said it was difficult to tell whether the US bank would get there after its next marketing drive.
Goldman has been gradually expanding into the UK retail banking market over the last year. In the summer it teamed up with insurance firm Saga, becoming its long-term saving partner in a bid to attract the over-50s.
It was reported in September that Goldman is poised to dip its toes into the UK retail investment market with plans to launch a stocks and shares Isa.
Goldman Sachs declined to comment.