Fed officials have looked into Goldman Sach's Consumer Banking unit "Marcus" for the last several weeks. Marcus is an online banking platform aimed at retail customers. Fed officials have spent the last several weeks questioning Goldman management and scheduling follow-ups concerning Marcus in a still ongoing process.
According to AdvisorHub, the review goes beyond the central bank's regular oversight of the firm and differs from its more frequent industrywide investigations of business lines of interest. By focusing on Marcus, the central bank is taking stock of a division that is new and growing substantially inside Goldman Sachs with little history of dealing with the public.
Chief Executive Officer David Solomon shared that the examination does not indicate any wrongdoing. However, it creates more pressure on the bank's leaders to showcase their command of the business and tighten controls. Goldman Sachs appears to have taken a more cautious approach toward Marcus's growth. Goldman's President John Waldron now will have a more significant role in overseeing the business to bring expenses in line and steady losses.
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