Goldman Sachs CFO Scherr Says Bank Is 'Very Open' to Acquisitions

Reuters  |

Image: Goldman Sachs CFO Stephen Scherr. Source: Goldman Sachs

By Elizabeth Dilts Marshall

NEW YORK (Reuters) - Goldman Sachs Group Inc Chief Financial Officer Stephen Scherr said on Tuesday the bank is “very open” to acquisitions, especially those that would speed the growth of its existing businesses.

“We’re ... very open to the proposition of acquisitions that fill gaps or accelerate elements of our growth plan,” Scherr said at a conference convened via conference call and webcast, rather than in-person, due to concerns about the coronavirus outbreak.

There has been wide investor speculation about Goldman’s appetite and ability to do mergers or acquisitions since rival Wall Street bank Morgan Stanley announced plans last month to buy discount broker E*Trade.

Goldman Chief Executive David Solomon has set ambitious targets for the bank to grow its fledgling online consumer bank, Marcus, its credit card business and cash management platform. But industry insiders are skeptical that it can grow quickly without doing a deal.

Scherr said the bank is not currently looking to do “larger material transactions ... in the near term.”

“I think you’ll find us to be much more acquisitive in the context of accelerating and facilitating the growth of business initiatives that are there, none of which would necessarily present themselves as... material to the firm overall,” he added.

Scherr also touched on the coronavirus and its impact on the bank’s day-to-day operations and markets.

He said the bank currently has no known cases of coronavirus among its staff, but that it continues to roll out precautionary measures, including splitting teams up to work at separate locations and having some staff work from home on a rotating basis.

Scherr said the bank is monitoring risk across all market sectors and has seen a “reduction broadly in liquidity” and some challenges in the “cost of funding.” But he said there are no major signs that corporate clients are under stress.

Reporting By Elizabeth Dilts Marshall; Editing by Chizu Nomiyama and Nick Zieminski.

_____

Source: Reuters

DISCLOSURE: The views and opinions expressed in this article are those of the authors, and do not necessarily represent the views of equities.com. Readers should not consider statements made by the author as formal recommendations and should consult their financial advisor before making any investment decisions. To read our full disclosure, please go to: http://www.equities.com/disclaimer. The author of this article, or a firm that employs the author, is a holder of the following securities mentioned in this article : None

Watchlist

Symbol Last Price Change % Change
AAPL

     
AMZN

     
HD

     
JPM

     
IBM

     
BA

     
WMT

     
DIS

     
GOOG

     
XOM

     
BRK.A

     
FB

     
JNJ

     
WFC

     
T

     
NFLX

     
TSLA

     
V

     
UNH

     
PG

     

Markets