Goldman Sachs consumer banking unit under Fed scrutiny – Bloomberg Law

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FILE PHOTO: The logo for Goldman Sachs is seen on the trading floor at the New York Stock Exchange (NYSE) in New York City

(Reuters) – Goldman Sachs Group Inc’s consumer banking unit is being reviewed by the Federal Reserve, Bloomberg Law reported on Friday, citing people familiar with the matter.

Goldman’s management has been subjected to questions and follow-ups from the central bank’s officials for several weeks, the report said, adding that the process was still ongoing.

Goldman Sachs and the Fed declined to comment.

Goldman Chief Executive Officer David Solomon has sought to reduce the bank’s reliance on volatile trading and investment banking by shifting focus to its consumer bank.

Internal projections at the bank show its consumer unit, Marcus, will record losses of more than $1.2 billion this year, Bloomberg News reported in June.

Marcus was launched in 2016 and was originally expected to make profits in 2021, but the cost of investing in new products and acquisitions derailed those projections.

(Reporting by Niket Nishant in Bengaluru; Additional reporting by Pete Schroeder Washington, D.C.; Editing by Vinay Dwivedi)

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