Goldman Sachs Should Split Into Three Units, Michael Price Says: Tom Keene

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. David Wells, a spokesman for Goldman Sachs in New York, declined to 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.

Goldman Sachs shares climbed 2.6 percent to $162.50 at 4 p.m. in New York. They have lost 3.8 percent this year, compared with a 9.5 percent gain in the Standard & Poor’s 500 Index and a 5 percent rise by financial stocks in the measure.

To contact the reporters on this story: Tara Lachapelle in New York at tlachapelle@bloomberg.net; Tom Keene in New York at tkeene@bloomberg.net.

To contact the editor responsible for this story: Nick Baker at nbaker7@bloomberg.net.

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