Zacks Investment Research: Goldman Invests in Mongolian Bank

On Thursday, Reuters reported that New York-based The Goldman Sachs Group Inc. (GS) has agreed to purchase 4.8% stake in Mongolia’s Trade and Development Bank. The terms of the deal were not disclosed. Founded in 1990, Trade & Development Bank was the first lending bank in Mongolia. In 2004, Asian Development Bank and International Finance Corp. have invested $11 million in the bank. As of September 2011, the bank had $1.3 billion worth of assets. Under the new Dodd-Frank rules, Goldman’s stake in the bank was restricted to 4.8%, as any investment exceeding 4.99% would require a particular exemption from the US Federal Reserve. In December 2010, Moody’s Investors Service, a credit rating arm of Moody’s Corporation (MCO) raised Trade & Development Bank’s outlook to stable from negative. This upgradation in the outlook was driven by the bank’s improvement in liquidity, capital position and asset quality trend. To read the full article, click hereGoldman Invests in Mongolian Bank

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