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

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

David Solomon, Chairman & CEO of Goldman Sachs, talking on Squawk Box at the WEF in Davos, Switzerland on Jan. twenty third, 2023. 

Adam Galica | CNBC

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

Shares slipped 2.54% on the information. Goldman is now up simply 0.15% on the 12 months.

Goldman Sachs day by day inventory transfer

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

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

“As we instructed the Wall Street Journal, the Federal Reserve is our main federal financial institution regulator and we don’t remark on the accuracy or inaccuracy of issues regarding discussions with them,” an organization spokesperson instructed CNBC.

Just days in the past, Goldman CEO David Solomon admitted that the financial institution suffered a disappointing quarter in part because it took on too much in the consumer banking business.

Last week, the New York-based funding financial institution posted its largest quarterly earnings miss in additional than a decade, showing falling revenue and rising expenses.

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