Note from the CEO:  Goldman thumbs nose at other online lenders. Kind of anyway. Since Goldman Sachs can use its balance sheet (deposits) to make loans rather than draw on outside funds (hedge funds) that other online lenders must do, it will have a strong competitive advantage. Gee, when did they ever NOT have an advantage? Oh, and by the way, should you other online lenders need help in seeking funds Goldman can help you too……..for a fee.

"Goldman Sachs Group Inc., the Wall Street investment bank pushing into online consumer lending, expects it can make loans on more competitive terms than Silicon Valley upstarts that pioneered and dominate the business.

Using deposits to fund loans -- rather than drawing on outside investors -- will give the firm more leeway when setting terms and fees, Stephen Scherr, head of the company’s banking operations, told an industry conference in New York on Tuesday.

'We view this as a balance-sheet activity," he said. “That will avail us of a certain flexibility in the design of the product.'"

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