Gerald Corrigan, a former president of the Federal Reserve Bank of

New York, is being tapped by
Goldman Sachs as chairman of its newly created bank holding company, according to the Financial Times.

Goldman and rival Morgan Stanley are transforming themselves into commercial banks, a move encouraged by the

US government after the bankruptcy of investment bank Lehman Brothers.

Goldman made a step in that direction last week when the New York Banking Department announced that it had given approval to the formation of Goldman Sachs Bank
USA, which consists of its

Utah industrial loan company and various other capital-intensive units such as its loan and mortgage arms.

Mr Corrigan’s appointment, expected to be announced soon, comes as speculation mounts over Goldman’s strategic direction in its new incarnation – including whether it will buy another bank to build its deposits more quickly.

The firm is expected to post a loss for the quarter that ended last week as a result of the recent rout in the markets.

Meanwhile, Goldman’s intentions to build a wealth management business have hit some headwinds. Peter Scaturro, the

New York global head of Goldman Sachs Private Wealth Management, is to leave the Wall Street bank at the end of this year, according to a Bloomberg report. Meanwhile, Pemille Jenson, head of

UK private clients at Goldman Sachs, has left the firm. He previously had been co-head of
Europe, along with Zurich-based Rene Mottas.

The FT said that in tapping Mr Corrigan as its chairman, Goldman is reaching out to a man that many consider among the best presidents the New York Fed has had.

Goldman Sachs faces a fourth-quarter loss of up to $2.2 billion, its first quarterly loss as a listed company, the FT quoted analysts as saying yesterday.