Federal Reserve investigating Goldman Sachs’ consumer banking division

The Federal Reserve is investigating Goldman Sachs Group Inc’s consumer banking arm( an internet banking platform aimed at retail clients), management has been exposed to inquiries and follow-ups by central bank authorities for several weeks, and the process is still ongoing.

The examination goes beyond the central bank’s usual monitoring of the company. While there is no evidence of misconduct, it is just another source of concern for CEO David Solomon. Marcus, Goldman Sachs’ investment banking unit, has spent more than $4 billion since its start in 2016. At the halfway point of the year, the bank’s internal forecast predicted that the division would suffer a record loss this year. Analysts forecast a 40% reduction in net income as business areas such as investment banking, capital markets, and asset management chill. In the first half, Goldman’s executives put aside 31% less for remuneration.

Goldman CEO David Solomon has attempted to lessen the bank’s reliance on risky trading and investment banking by focusing on its consumer bank. It was gathered in June by internal bank predictions that the consumer unit of Goldman Sachs would lose more than $1.2 billion this year.