Goldman wants to buy up to $50 billion in bank assets

Goldman Sachs loves playing the role of white knight. It now say it is willing to commit up to $50 billion to buy bank assets. Goldman plans to talk to regulators to identify appropriate opportunities, according to the Financial Times. Goldman chief financial officer David Viniar maintains the bank can be proactive because it has already been shedding problem assets. For example, Goldman owns a mere $8 billion in commercial mortgage-backed securities. It could likely sell those for a gain. It has cut its exposure to CLOs as well, from $52 to $8 billion. On top of that, it is receiving a $10 billion injection of capital, half of which comes from Warren Buffett. So the gilded bank is apparently well positioned to bulk up with commercial bank assets. And why not? The government is basically willing to strike some good deals for quality buyers. 

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