Core Viewpoint - Goldman Sachs is actively seeking acquisitions, but potential deals may not align with current market speculation, particularly regarding Northern Trust, which has seen a 20% increase in share price due to rumors [1][10]. Group 1: Goldman Sachs' Acquisition Strategy - Goldman Sachs CEO David Solomon is cautious about overpaying for acquisitions, particularly in the case of Northern Trust, which would require a premium price [2][4]. - The unique culture of Goldman Sachs may hinder its ability to merge with another bank of similar size [2]. - Goldman Sachs is under pressure to grow its market capitalization, which stands at $221 billion compared to JPMorgan's $830 billion, indicating a need for strategic acquisitions to remain competitive [7]. Group 2: Potential Acquisition Targets - State Street Corp., valued at approximately $30 billion, is identified as a potential acquisition target for Goldman Sachs due to its strong position in custodian and investment services [8]. - BNY Mellon, a mid-sized bank, is also considered a target, especially following their joint venture to offer tokenized money market funds, which could lead to a merger [9]. Group 3: Broader Banking Merger Landscape - The Federal Reserve's relaxed regulatory approach is encouraging merger discussions among banks, allowing mid-sized banks to expand after years of restrictions [5][6]. - Citigroup, having improved its balance sheet, is now positioned to pursue acquisitions, potentially including a European bank to enhance its international presence [12][14]. - UBS is reportedly looking to acquire US bank assets following its merger with Credit Suisse, aiming to reduce its exposure in Switzerland [14].