Goldman Sachs Comes Under Federal Probe For Its Consumer Unit: Report

Goldman Sachs Comes Under Federal Probe For Its Consumer Unit: Report
  • Bloomberg reported that Goldman Sachs Group Inc's GS consumer banking unit, dubbed Marcus, is under Federal Reserve scrutiny, citing people familiar with the matter.
  • Goldman's management has faced questions and follow-ups from the central bank's officials for several weeks, the report added, and the process is still ongoing.
  • Related: Investors Seek Goldman Sach's Testimony On Jho Low Behind Malaysia's 1MDB Scandal.
  • The review goes beyond the central bank's regular oversight of the firm. The central bank is taking stock of a relatively new division growing substantially inside a company without a substantial history of general public dealing.
  • While it's not indicative of any wrongdoing, it is another headache, stated Goldman's CEO, David Solomon.
  • At mid-year, the bank's internal forecast estimated the business would post a record loss of more than $1.2 billion in 2022.
  • According to recent reports, Goldman Sachs will cut around 1% of its jobs as soon as this month. With a total headcount of 47,000, a 1% cut would imply a reduction of about 500 jobs.
  • Price Action: GS shares are down 2.80% at $322.33 on the last check Friday.
  • Photo via Wikimedia Commons

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