The acquisition of pensions insurer Paternoster by Goldman Sachs' Rothesay Life is hopefully a happy ending for the firm's staff and, crucially, for the pensioners, who will benefit from a "substantial" injection of extra capital from the US bank.

Goldman has been obliged to make the extra payment, over and above the £260m paid to shareholders, in order to gain approval from the UK's Financial Services Authority, the firm said this morning. It amounts to a significant re-commitment by the US bank to the pensions buyout venture it launched in 2007.