Goldman Sachs builds stake in ailing UK bank

It remains unclear when Goldman began its stakebuilding

Goldman Sachs

Goldman Sachs builds stake in ailing UK bank. Source: shutterstock.com

American bank Goldman Sachs has built an 8.5% voting rights stake in ailing Metro Bank, LearnBonds says.

According to the information, the share price of the UK bank has dropped by almost 90% when it disclosed an almost £1 billion accounting error in 2019. In February 2020, it announced a £130.8 million pre-tax loss last year, compared to £40.6 million pre-tax profit in 2018. Besides, Metro Bank’s deposits fell by 8% to £14.48 billion.

Goldman Sachs revealed to built up 6.18% in Metro voting rights attached to shares, and a further $2.30 through financial instruments, leaving it with a total of 8.48%.

At the same time, Goldman Sachs’s investment remains in line with its efforts of increasing its presence in UK retail banking. For instance, it launched its online retail savings bank, Marcus, in the UK in 2018, which has taken around £13 billion of customer deposits.

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