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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