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Goldman Sachs Slips on Report That the Federal Reserve Is Investigating Its Marcus Business

The Federal Reserve is investigating Goldman Sachs’ consumer businesses. The company’s shares are now under scrutiny as they fell 2.54%. Goldman is now up 0.15% on the year. According to a Journal report, the regulator is investigating whether Goldman had the appropriate safeguards to protect consumers when it increased lending in its Marcus division.
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 federal bank regulator and we do not comment on the accuracy or inaccuracy of matters relating to discussions with them,” a company spokesperson told CNBC. Goldman’s CEO David Solomon admitted just days ago that the bank’s disappointing quarter was partly caused by taking on too much consumer banking work. The New York-based investment bank announced last week that it had experienced its largest quarterly earnings miss in more than a decade due to declining revenue and rising expenses.