Markets Stay Mixed as Goldman Sachs Fights Back Against Fintech Disruptors
The stock market was mixed on Wednesday, with investors continuing to weigh worries about the pandemic and inflation against what seems to be a robust economic recovery. As of 11:30 a.m. EDT today, the Dow Jones Industrial Average (DJINDICES: ^DJI) was up 77 points to 34,655. The S&P 500 (SNPINDEX: ^GSPC) had picked up 10 points to 4,453, but the Nasdaq Composite (NASDAQINDEX: ^IXIC) had eased lower by 6 points to 15,032.
Fintech companies have taken the financial industry by storm, and they've threatened to disrupt the stranglehold that traditional banking institutions like Goldman Sachs (NYSE: GS) have had over the industry for decades. Yet well-established consumer and investment banks aren't just giving up without a fight. Today, Goldman made a move in what has become a busy space for mergers and acquisitions, and its game plan could become a model for other big financial institutions looking to protect their turf in the face of disruptive efforts from up-and-coming rivals.
Goldman announced early Wednesday that it had agreed to acquire GreenSky (NASDAQ: GSKY) for $2.24 billion. The all-stock deal will give Goldman access to the largest fintech platform for consumers seeking to obtain loans for home improvement projects. And Goldman sees GreenSky as having distinct technology that could give it an advantage as it seeks to build out its own Marcus consumer banking platform.
Source Fool.com
