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The Federal Reserve is investigating Goldman Sachs over the winding up of its consumer business known as Marcus, FOX Business confirmed on Friday.
Goldman Sachs is under investigation by the Federal Reserve for policing its consumer business Marcus. (Portal photos)
| ticker | security | Last | To change | To change % |
|---|---|---|---|---|
| GS | THE GOLDMAN SACHS GROUP INC. | 341.84 | -8.85 | -2.52% |
Citing people close to it, The Wall Street Journal reported earlier in the day that the central bank has concerns that Goldman failed to provide adequate safeguards to Marcus as the consumer lender’s business grew.
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Sources trusted told FOX Business that they weren’t sure about the seriousness of the Fed investigation, but noted that the central bank regularly investigates consumer bank compliance issues and that Fed officials are stationed at every major bank to monitor such issues to monitor.
The Marriner S. Eccles Federal Reserve Board building can be seen in Washington, DC. The central bank is investigating Goldman Sachs for winding up its consumer business. (Photo by SAUL LOEB/AFP via Getty Images/Getty Images)
When asked for comment, a Goldman spokesman told FOX Business, “The Federal Reserve is our primary federal bank regulator and we do not comment on the accuracy or inaccuracy of any matter related to discussions with it.”
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The well-known sources also said the investigation is not seen as an existential threat to Goldman, but it poses another problem for ailing CEO David Solomon.
Goldman Sachs Group Inc. Chief Executive Officer David Solomon during a Bloomberg Television presentation at the Goldman Sachs Financial Services Conference in New York on Tuesday, December 6, 2022. (Photographer: Michael Nagle/Bloomberg via Getty Images / Getty Images )
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They added that Solomon is facing pressure from partners at the megabank over its handling of consumer business, in addition to Goldman’s recent profit shortfalls and bonus cuts.