But in recent months, Goldman has signaled a partial retreat from those efforts by scrapping plans for a checking account broadly available to the public and mothballing its personal loan business. A popular savings account and a credit card business survive for now.
Last week, the bank disclosed that it had accumulated $3 billion in losses in its consumer banking franchise since 2020, mostly money set aside to cover potential loan losses in its consumer lending businesses. Bank regulators are reportedly looking into whether the consumer business had proper safeguards in place as it grew larger.
The retreat in consumer banking comes as Goldman tries to refocus on its roots: advising corporations on deals, investing, and trading, and servicing the well-to-do. The firm's revenue from investment banking, trading, and wealth management made up two-thirds of total revenue last year.
"I think it became clear to us early in 2022 that we were doing too much, it was affecting our execution," said David Solomon, Goldman's chairman, and CEO, in a call with analysts when the bank reported its results earlier this month.
Goldman's push into consumer banking was one of the biggest changes in the firm's 154-year history. The investment bank had to legally convert itself into a bank holding company in 2008 during the financial crisis to get access to the Federal Reserve's emergency funding operations. That led to jokes within the industry that the Wall Street titan Goldman Sachs was going to issue something as commonplace as an ATM card.
The jokes became a reality when Goldman bought the assets of GE Capital and launched its online-only savings account providing an above-market interest rate. The savings account became an unexpected hit for Goldman, with waiting lists forming after its initial launch both in the U.S. and later in the U.K.
この記事は Techlife News の January 28, 2023 版に掲載されています。
7 日間の Magzter GOLD 無料トライアルを開始して、何千もの厳選されたプレミアム ストーリー、9,000 以上の雑誌や新聞にアクセスしてください。
すでに購読者です ? サインイン
この記事は Techlife News の January 28, 2023 版に掲載されています。
7 日間の Magzter GOLD 無料トライアルを開始して、何千もの厳選されたプレミアム ストーリー、9,000 以上の雑誌や新聞にアクセスしてください。
すでに購読者です? サインイン
US Companies See Record-Low Profits in China Amid Geopolitical Tensions and Slow Growth, Report Says - American companies in China are seeing record-low profits, with business confidence at an all-time low amid U.S.-China tensions and a slowing Chinese economy
American companies in China are seeing record-low profits, with business confidence at an all-time low amid U.S.-China tensions and a slowing Chinese economy, according to a report published Thursday by a U.S. business group.
Google's AI Model Faces European Union Scrutiny From Privacy Watchdog - European Union regulators said Thursday they're investigating one of Google's artificial intelligence models over concerns about its compliance with the bloc's strict data privacy rules.
European Union regulators said Thursday they’re investigating one of Google’s artificial intelligence models over concerns about its compliance with the bloc’s strict data privacy rules. The Irish watchdog said earlier this month that Elon Musk’s social media platform X has agreed to permanently stop processing user data for its AI chatbot Grok. The platform did so only after the watchdog took it to court the month before, filing an urgent High Court application to get X to “suspend, restrict or prohibit” processing of personal data contained in public posts by its users.
AUSTRALIA PROPOSES LEGAL MINIMUM AGE FOR CHILDREN ACCESSING SOCIAL MEDIA
The Australian government this week promised to legislate this year to enforce a minimum age for children to access social media, but it has yet to announce how ages will be verified.
SWEDEN JOINS COUNTRIES SEEKING TO END SCREEN TIME FOR CHILDREN UNDER 2
Sweden says children under the age of 2 should not be exposed to any digital screens.
EU'S TOP COURT DISMISSES APPLE'S FINAL APPEAL AGAINST ORDER TO PAY IRELAND 13B EUROS IN BACK TAXES
Apple this week lost its last bid to avoid paying 13 billion euros ($14.34 billion) in back taxes to Ireland, in a finale to a dispute with the European Union that centered on sweetheart deals that Dublin was offering to attract multinational businesses with minimal taxes across the 27-nation bloc. The final decision by the EU’s top court was quickly hailed as a landmark victory over corporate greed.
GOOGLE AND APPLE LOSE THEIR COURT FIGHTS AGAINST THE EU AND OWE BILLIONS IN FINES AND TAXES
Google lost its last bid to overturn a European Union antitrust penalty, after the bloc's top court ruled against it Tuesday in a case that came with a whopping fine and helped jumpstart an era of intensifying scrutiny for Big Tech companies.
US POSTAL SERVICE SQUEEZE ON SHIPPING CONSOLIDATORS COULD RAISE CONSUMER COSTS
The U.S. Postal Service said this week that it is ending discounts that shipping consolidators such as UPS and DHL use to get packages to the nation’s doorsteps, in a move meant to help the Postal Service slow losses but that could see the higher costs passed on to consumers.
TELEGRAM CEO DEFENDS HIMSELF AGAINST FRENCH CHARGES IN FIRST PUBLIC COMMENTS
Telegram founder and CEO Pavel Durov promised to step up efforts to fight criminality on the messaging app, his first public comments since French authorities handed him preliminary charges for allegedly allowing the platform's use for criminal activity.
JAMES EARL JONES' DARTH VADER VOICE LIVES ON THROUGH AI.VOICE ACTORS SEE PROMISE AND PERIL IN THAT
Over the course of an acting career that spanned more than six decades, James Earl Jones' voice became an indelible piece of his work as a performer.
GOOGLE FACES A NEW ANTITRUST TRIAL AFTER RULING DECLARING SEARCH ENGINE A MONOPOLY
One month after a judge declared Google's search engine an illegal monopoly, the tech giant faces another antitrust lawsuit that threatens to break up the company, this time over its advertising technology.