Goldman Sachs slips on report the Fed is probing its Marcus business

Goldman Sachs slips on report the Fed is probing its Marcus business

Goldman Sachs shares got here beneath strain Friday after a Wall Avenue Journal report mentioned the Federal Reserve is investigating the financial institution’s shopper business.

Shares slipped practically 3% on the information. Goldman is now up lower than 1% on the yr.

The regulator is wanting into whether or not Goldman had the proper safeguards in place to guard shoppers when it elevated lending in its Marcus division, according to the Journal report, which cites sources aware of the matter.

The central financial institution was beforehand reviewing Marcus, Bloomberg news reported in September.

“As we told the Wall Street Journal, the Federal Reserve is our primary federal bank regulator and we do not comment on the accuracy or inaccuracy of matters relating to discussions with them,” an organization spokesperson advised CNBC.

Simply days in the past, Goldman CEO David Solomon admitted that the financial institution suffered a disappointing quarter partly as a result of it took on an excessive amount of in the shopper banking business.

Final week, the New York-based funding financial institution posted its largest quarterly earnings miss in additional than a decade, displaying falling income and rising bills.

— CNBC’s Yun Li and Hugh Son contributed reporting.

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