Goldman Sachs’ client banking unit is being reviewed by the Federal Reserve, Bloomberg Legislation reported on Friday, citing folks aware of 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 said, including that the method was nonetheless ongoing.
Goldman Sachs and the Fed declined to remark.
Goldman chief government officer David Solomon has sought to cut back the financial institution’s reliance on unstable buying and selling and funding banking by shifting focus to its client financial institution.
Inside projections on the financial institution present its client unit, Marcus, will report losses of greater than $1.2 billion this 12 months, Bloomberg Information reported in June.
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.