Goldman Sachs client banking unit underneath Fed scrutiny, Bloomberg Legislation reviews

Sept 16 (Reuters) – Goldman Sachs Group Inc’s (GS.N) client banking unit is being reviewed by the Federal Reserve, Bloomberg Legislation reported on Friday, citing folks conversant in the matter.

Goldman’s administration has been subjected to questions and follow-ups from the central financial institution’s officers for a number of weeks, the report stated, including that the method was nonetheless ongoing. (https://bit.ly/3BJcc1i)

Goldman Sachs and the Fed declined to remark.

Goldman Chief Government Officer David Solomon has sought to scale back the financial institution’s reliance on risky buying and selling and funding banking by shifting focus to its client financial institution. learn extra

Inner projections on the financial institution present its client unit, Marcus, will report losses of greater than $1.2 billion this yr, Bloomberg Information reported in June. learn extra

Marcus was launched in 2016 and was initially anticipated to make income in 2021, however the price of investing in new merchandise and acquisitions derailed these projections.

Reporting by Niket Nishant in Bengaluru; Extra reporting by Pete Schroeder Washington, D.C.
Modifying by Vinay Dwivedi

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