New York’s financial giants Goldman Sachs and Morgan Stanley are expected to submit bids for a controlling stake in U.S. banks in an all-cash deal worth up to $2 billion, according to a person familiar with the matter.
The person, who spoke on condition of anonymity because the transaction is private, said the talks are expected this week, but the deal could close as early as next week.
The person declined to elaborate on what a deal would look like.
Goldman Sachs declined to comment.
Morgan Stanley did not immediately respond to a request for comment.
Goldman Sachs has been among the most aggressive U.K. banks looking to buy stakes in the U.T.A.S., which has been grappling with a financial crisis that has seen the world’s largest financial firms struggle to meet regulatory targets.
While the UBS-led consortium is expected to make a bid, it’s unclear how much it would offer.
The consortium’s board includes former UBS banker Peter Baudis, who was appointed UBS’s chief operating officer in January and is currently a partner at law firm Wachtell, Lipton, Rosen & Katz.
UBS and UBS AG have said they would consider a takeover of the UTSB.
Morgan and Goldman have been the most vocal critics of the TTI, arguing that the group’s leadership and management structure is insufficiently strong to withstand the pressure of the financial crisis.
Morgan, for example, has been critical of the way the UTAs governance structure was created in the wake of the crisis.
It was the TAs failure to create a strong board that led to a culture of payoffs to senior management that is causing problems for the company, the bank has said.
The TAs board is made up of a handful of executives who represent the interests of the majority of its members, the group has said, arguing the structure is a reflection of the board’s failure to hold the group accountable for its failures.
Morgan has also been critical in the past of the group, arguing in a 2017 letter that the TIs board was not well-equipped to manage the group after the crisis and that some members were not qualified to take on board roles.
It’s unclear whether the TTSB would have a similar problem, as the Uts and UTSA are owned by different investors.
Goldmen is one of the most successful U.N.-backed banks in the world, with its investments helping it to win billions of dollars of market-beating U.C.N. and World Bank loans.
The bank is currently valued at $1.4 trillion, or about $5.7 billion more than the UBC’s.