Goldman Sachs slips on report that the Federal Reserve is investigating its Marcus activities


David Solomon, Chairman and CEO of Goldman Sachs, speaks at Squawk Box at the WEF in Davos, Switzerland on January 23, 2023.

Adam Galica | CNBC

Goldman Sachs Shares came under pressure Friday after a Wall Street Journal report said the Federal Reserve is investigating the bank’s consumer activities.

Shares fell nearly 3% on the news. Goldman is now up less than 1% year over year.

Goldman Sachs daily stock movement

The regulator is looking into whether Goldman had proper safeguards to protect consumers when it increased lending in its Marcus division, according to the Journal report, citing sources familiar with the matter.

The central bank was previously reviewing Marcus, Bloomberg News reported in September.

“As we told the Wall Street Journal, the Federal Reserve is our primary regulator for the federal bank and we do not comment on the accuracy or inaccuracy of any matter related to discussions with them,” a company spokesperson told CNBC. .

Just days ago, Goldman CEO David Solomon admitted the bank had a disappointing quarter, in part because it was taking on too much in consumer banking.

Last week, the New York-based investment bank posted its biggest missed quarterly earnings in more than a decade, with revenues falling and costs rising.

— CNBC’s Yun Li and Hugh Son reported.

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