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The Federal Reserve is investigating Goldman Sachs's consumer business to determine whether the bank had appropriate safeguards in place as it ramped up lending at Marcus. Marcus has racked up steep losses—more than $3 billion since 2020. The Fed investigation and related issues could lead to additional costs.
The Fed is looking into whether Goldman has exercised appropriate oversight over Marcus and whether it has management or governance problems, according to people familiar with the matter. The regulator is also examining what happened in instances of customer harm, including whether issues were flagged internally and, if they were, whether they were properly resolved, they said. The probe encompasses Goldman’s compliance functions, as well as audit and legal, some of the people said. Bloomberg News previously reported that the Fed was reviewing Goldman’s consumer business.
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