- Bloomberg reports the Goldman Sachs Group Inc GS The consumer banking unit, which goes by the name of Marcus, is being placed under US Federal Reserve watch and citing people familiar with the matter.
- Goldman’s management has faced questions and follow-up action from central bank officials for several weeks, the report added, and the process is still ongoing.
- Related: Investors are seeking Goldman Sach’s testimony on Jho Low behind Malaysia’s 1MDB scandal.
- The review goes beyond the regular monitoring of the company by the central bank. The central bank takes stock of a relatively new department that is growing significantly within a company with no significant history of public trading.
- While not an indication of wrongdoing, it is another issue, Goldman CEO David Solomon said.
- At mid-year, the bank’s internal forecast projected that the company would post a record loss of more than $1.2 billion in 2022.
- According to recent reports, Goldman Sachs cut around 1% of its jobs already this month. With total employment of 47,000, a 1% cut would mean a loss of around 500 jobs.
- Price promotion: GS shares are down 2.80% on the last check Friday to $322.33.
- Photo via Wikimedia Commons
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