Goldman Sachs applies for state charter

NEW YORK, Oct. 14 (UPI) -- Goldman Sachs has applied for a New York State charter, choosing state regulators to oversee its new banking subsidiaries, the company said.

In September, the Federal Reserve redefined the firm as a bank holding company, which allows it access to low-cost funding, but also subjects the firm to additional regulatory oversight, The Wall Street Journal reported.

The move to work with state regulators signals the firm's intention to concentrate on asset management, rather than retail banking, The New York Times reported.

But, New York's banking superintendent Richard Neiman said the state charter "shouldn't inhibit" the company from purchasing a retail bank from another state.

A Goldman Sachs spokesman said the company has a "long association with New York State."

With a state charter, "we're pleased ... that relationship will be reinforced," the spokesman said.