Benzinga - The Federal Reserve is reportedly investigating Goldman Sachs Group Inc (NYSE: GS)'s consumer business and whether the division exercised appropriate oversight as it ramped up lending.
The Fed is probing the unit, dubbed Marcus, to determine whether it has management or governance problems, The Wall Street Journal reported Friday, citing people familiar with the matter.
The report said the Fed is concerned the Wall Street giant did not have proper monitoring and control systems inside Marcus, its consumer unit, as it grew in size.
The probe, which grew out of a standard Fed review of the business in 2021 and intensified into an investigation last year, is also examining instances of customer harm and whether they were adequately resolved, the report said.
The probe would add to Goldman's woes, shifting its focus on its core trading and investment banking business after losing money in its consumer banking venture.
Earlier this month, Goldman Sachs announced it was eliminating up to 3,200 positions, with most job cuts coming in its core trading and banking units.
GS Price Action: Goldman Sachs shares are down 2.71% at $341.23 on the last check Friday.
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