Goldman Sachs slips on report the Fed is probing its Marcus business

Goldman Sachs slips on report the Fed is probing its Marcus business

David Solomon, Chairman & CEO of Goldman Sachs, speaks about Squawk Box at the WEF in Davos, Switzerland on January 23, 2023.

Adam Galika | CNBC

Goldman Sachs Shares came under pressure on Friday after a Wall Street Journal report said the Federal Reserve was investigating the bank’s consumer business.

Shares fell 2.54% on the news. Goldman is now up just 0.15% year over year.

Goldman Sachs daily stock movement

Regulators are examining whether Goldman took the right safeguards to protect consumers as it increased lending at its Marcus division, according to the Journal report, which cites sources familiar with the matter.

The central bank had previously vetted Marcus, Bloomberg news reported in September.

“As we reported to The Wall Street Journal, the Federal Reserve is our primary federal banking regulator and we do not comment on the accuracy or inaccuracy of any matter related to discussions with it,” a company spokesman told CNBC.

A few days ago, Goldman CEO David Solomon admitted the bank suffered a disappointing quarter in part because it took on too much of its retail banking business.

Last week, the New York-based investment bank posted its biggest quarterly profit decline in more than a decade, showing falling revenue and rising expenses.

— CNBC’s Yun Li and Hugh Son contributed coverage.