Goldman Sachs Under Expanded Investigation For Its Credit Card Business


  • Goldman Sachs Group Inc (NYSE: GS) is facing expanded scrutiny of its credit-card business beyond the Consumer Financial Protection Bureau (CFPB) to include other government agencies.

  • Goldman Sachs said last year that the CFPB is looking into its credit-card practices, including how it resolves incorrect bills and processes refunds, Bloomberg reported.

  • The probe also examines advertisements and how Goldman credits "nonconforming payments" and reports information to credit bureaus.

  • In September, Bloomberg reported that Goldman Sachs' consumer banking unit, Marcus, is under Federal Reserve scrutiny and faced several weeks of questions and follow-ups from the central bank's officials.

  • The bank tied up with Apple Inc (NASDAQ: AAPL) and General Motors Co (NYSE: GM) and entered the business in 2019 with the launch of the Apple Card, later adding the General Motors card business.

  • Its credit-card balances climbed to $16 billion at the end of 2022, double the year-earlier amount.

  • In January, Federal Reserve is reportedly investigating Goldman Sachs' consumer business and whether the division exercised appropriate oversight as it ramped up lending.

  • The Fed is probing the unit to determine whether it has management or governance problems.

  • GS Price Action: Goldman Sachs shares are down 0.27% at $362.55 on the last check Friday.


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