Billionaire investor Michael Price said Goldman Sachs Group Inc. should divide its company into three separate entities because the investment bank may be getting too large.
“Goldman should split up into three parts,” Price said today during a television interview on “Bloomberg Surveillance” with Tom Keene. “A banking business, a trading business and a money management business.”
The most profitable securities firm in Wall Street history could “free up some capital” and trade at the equivalent of $250 a share if it split itself into three entities, Price, president of MFP Investors LLC, said. Goldman Sach’s media relations office didn’t immediately respond to a request for comment.
Price made his reputation as a value investor in the 1980s by buying shares of beaten-down lenders and running some of the best-performing mutual funds in the U.S.
Shares of Goldman Sachs climbed 2.2 percent to $161.99 at 12:49 p.m. in New York. The stock has declined 4.1 percent this year, compared with an 9.2 percent gain in the Standard & Poor’s 500 Index and a 4.3 percent rise in a group of S&P 500 financial stocks.
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