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Goldman Sachs Is Under Investigation By The Federal Reserve

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Goldman Sachs Is Under Investigation By The Federal Reserve

(CTN News) – Goldman Sachs has been announced as the subject of an investigation by the Federal Reserve, it has been reported in the Wall Street Journal.

According to the report, the investigation is reportedly looking into whether or not the bank had the necessary safeguards in place as it expanded its consumer lending business.

Among the biggest banks and investment firms in the world, Goldman Sachs Group Inc. is one of the most prominent financial institutions.

In spite of this, the Fed has expressed concern that the entity “didn’t have proper monitoring and control systems inside the consumer business, known as Marcus,” especially as the company continued to grow and expand.

According to the publication report on the matter, the Fed is coordinating the probe to determine whether Marcus had “appropriate oversight,” as indicated in the publication report regarding the matter.

Additionally, it was noted that people with information on the situation reported that the investigation also observed potential problems with management and governance in the consumer business sector.

In addition, the Federal Reserve examination is seeking to determine whether protocols were in place in the event of customer harm.

Afterwards, the report continues on to ask whether those issues were “flagged internally” and whether they were properly addressed, according to the report.

In addition, people with insight into the investigation have stated that the probe will encompass all aspects of Goldman Sachs compliance functions, as well as audit and legal.

This is according to the document. Furthermore, this news follows previous Bloomberg reports that the Fed had been reviewing Goldman Sachs’ consumer business over the past couple of weeks.

Goldman Sachs has also been reported to be “scaling back” its consumer business in the Wall Street Journal, according to the report.

This move is reportedly part of what the firm is describing as a “broader reshuffle” within the company.

In response to the action, David Solomon, CEO of the company, stated that the company tried to do too much too quickly.

What is so special about Goldman Sachs?

Commitment to Client Service

For more than 150 years, a culture of teamwork and client service has defined our firm. Today, nearly 40,000 Goldman Sachs colleagues work together to serve our clients and communities around the world, building upon a rich history of innovative ideas from extraordinary people.

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