"Everything Goldman has done in the last 30 to 40 years has all been focused on the commercial side, or things that abut it very closely," said Chris Kotowski, a bank analyst with Oppenheimer & Company. "I refuse to believe that hiring a couple of programmers and offering to make $15,000 loans online is a highly value-added banking strategy."
And, it gets better:
The initial financing for the loans would come from certificates of deposit, which Goldman has been amassing in recent years. As the business grows, the bank may securitize the loans -- bundle them and sell them to investors -- to reduce some of the risk that it holds on its own books.
Is that a tornado klaxon I hear?