The Federal Reserve is investigating Goldman Sachs' consumer business

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The Federal Reserve is investigating Goldman Sachs' consumer business - WSJ

Published Jan 20, 2023 12:03

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The Federal Reserve is investigating Goldman Sachs' consumer business - WSJ

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By Sam Boughedda

Goldman Sachs' (NYSE:GS) consumer business is reportedly being investigated by the Federal Reserve to look into whether the bank had suitable safeguards in place as it ramped up lending, according to The Wall Street Journal, citing people familiar with the matter.

The report states that the Federal Reserve is concerned that the bank didn't have appropriate monitoring and control systems inside its consumer business, especially as it grew more prominent.

They are said to specifically be looking at whether Goldman Sachs' consumer business, known as Marcus, was properly appropriately supervised and whether it has management or governance problems.

They are also assessing what happened in circumstances of customer harm, in addition to whether issues were flagged internally and if they were adequately resolved.

Goldman Sachs' move into the consumer banking segment was a big shift for the bank, but it has run into some setbacks, with the WSJ stating that in a business call with analysts this week, Goldman Sachs Chief Executive David Solomon said it "tried to do too much too quickly."

Goldman Sachs shares are down over 3% Friday.

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