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Goldman Sachs was wrong to report that the Fed was investigating its Marcus business


David Solomon, chairman and CEO of Goldman Sachs, speaking at the Squawk Box at WEF in Davos, Switzerland on January 23, 2023.

Adam Galitsa | CNBC

Goldman Sachs shares came under pressure on Friday after a Wall Street Journal report said the Federal Reserve was investigating the bank’s consumer business.

Shares fell 2.54% after the news. Goldman is now up just 0.15% for the year.

Goldman Sachs Daily Stock Movement

The regulator is looking into whether Goldman had adequate safeguards to protect consumers when it increased lending at its Marcus unit. according to a Journal reportwhich cites sources familiar with the matter.

The central bank previously considered Marcus, This was reported by the Bloomberg agency in September.

“As we told the Wall Street Journal, the Federal Reserve is our primary federal banking regulator, and we do not comment on the accuracy or inaccuracy of matters related to discussions with them,” a company spokesperson told CNBC.

Just a few days ago, Goldman CEO David Solomon admitted that the bank had suffered a disappointing quarter partly because it was too heavily involved in the consumer banking business.

Last week, the New York-based investment bank posted its biggest quarterly profit decline in more than a decade, showing falling revenues and rising costs.

— CNBC’s Yun Li and Hugh Son contributed to this report.

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