U.S. Fed probes Goldman Sachs consumer business.
The U.S. Federal Reserve is investigating Goldman Sachs Group Inc’s consumer business to determine whether the bank accelerated lending, the Wall Street Journal reported on Friday, citing people familiar with the matter.Investment bank rabbits were down nearly 3%.
The central bank is concerned that the Wall Street giant did not have proper monitoring and control systems in place at Marcus, its consumer unit, as it grew larger, the report said.The inquiry, which grew out of a standard Fed review of business in 2021 and intensified into an investigation last year, is also looking into instances of consumer harm and whether they were properly resolved, the report said.
“The Federal Reserve is our primary federal bank regulator and we do not comment on the accuracy or inaccuracy of matters related to discussions with them,” a Goldman spokeswoman told Reuters.Bloomberg News reported in September that the bank’s Marcus unit faced a Fed review. The investigation will add to difficulties for Goldman, which is implementing a strategic pivot that involves refocusing on its core trading and investment banking business after losing money in its consumer banking venture.Goldman’s credit card business is also being investigated by the Consumer Financial Protection Bureau (CFPB), the bank disclosed last year.
