Goldman Sachs mulls 'strategic alternatives' for consumer business after shortfall

Record ID: 1713121

  • Title: Goldman Sachs mulls 'strategic alternatives' for consumer business after shortfall
  • Date: 28th February 2023
  • Summary: IRBID, JORDAN (FEBRUARY 26, 2023) (REUTERS) (PART MUTE) VARIOUS OF TIME-LAPSES SHOWING VOLUNTEERS PAINTING AWARENESS RAISING MURAL (MUTE) VARIOUS OF VOLUNTEERS PAINTING MURAL (SOUNDBITE) (Arabic) VOLUNTEER, NOUR AL MUGHRABI, SAYING: “Volunteering helps enhance the character of young people and builds their characters. It enhances nationalism and loyalty to the country. I
  • Embargoed: 14th March 2023 22:23
  • Keywords: Carey Halio Goldman Sachs bank
  • Location: NEW YORK, NEW YORK, UNITED STATES
  • City: NEW YORK, NEW YORK, UNITED STATES
  • Country: US
  • Topics: Company News Markets,Economic Events,North America
  • Reuters ID: LVA009371328022023RP1
  • Aspect Ratio: 16:9
  • Story Text:Goldman Sachs Group Inc.'s Chief Executive David Solomon said the bank is considering "strategic alternatives" for its consumer business after stumbles led to billions of dollars in losses.
    Solomon did not specify what those options would be.
    Goldman has already halted unsecured lending, a portfolio that could be sold.
    Its Marcus consumer business was folded into the company's merged asset and wealth management arm last year, and its newly-formed Platform Solutions unit houses transaction banking, credit cards and a fintech platform, GreenSky.
    Solomon's comments, which were reiterated by company president John Waldron and Stephanie Cohen, global head of Platform Solutions, signal a further retreat from its Main Street ambitions.
    Cohen said she expected the Platform Solutions business to break even on a pre-tax basis by 2025 after it lost $3 billion in nearly three years.
    "We'll make significant improvements towards that goal this year," said Carey Halio, global head of investor relations for Goldman Sachs. "But also, we want to be nimble, we want to adapt and learn as we go, and so we are going to explore strategic alternatives. Unlocking the loss in Platform Solutions is really 150 basis points on our ROE (return on equity), so it's very meaningful to us."
    The bank will aim to grow fees from asset and wealth management and drive better performance in its fintech unit, executives said at the company's second investor day in its 154-year history.
    The consumer business that Solomon championed lost $3 billion in almost three years and its operations are being probed by regulators.
    (Production: Andrew Hofstetter, Lananh Nguyen, Dan Fastenberg, Roselle Chen)
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