In The NewsMoney & The Economy

Major Banker Takes Billion-Dollar Hit In Just Nine Months

https://dailycaller.com/

Goldman Sachs lost just over $3 billion on its consumer credit and consumer technology unit from 2020 through the third quarter of 2022, according to a regulatory filing revealed Friday.

The newly released financial information shows the extent of Goldman Sachs’ struggle to enter Main Street, with its consumer-lending arm Marcus failing to turn a profit at any point, despite a major push that involved a 2019 partnership with Apple to offer credit cards, the WSJ reported. The company’s Platform Solutions department, which manages credit cards and other transaction banking services, posted a roughly $1.2 billion loss in the first nine months of 2022, accelerating from yearly losses of $783 million in 2020 and just over $1 billion in 2021, according to Goldman Sachs.

The regulatory filing, posted one week before its scheduled quarterly report, is the first that breaks the firm into its Global Banking & Markets, Asset & Wealth Management and Platform Solutions divisions, following an October restructuringaccording to Bloomberg. The Platform Solutions department was originally supposed to break even at the end of 2022, but following the restructuring is now set to break even by the end of 2025, Bloomberg reported, citing anonymous sources familiar with the company.

Previous financial reports had shown just $1.3 billion in losses in its consumer-banking division since the middle of 2019, Bloomberg reported. The filing, which retroactively reports on the newly formed division, provides a clearer picture of just how significantly the remaining portions of Goldman’s consumer-lending division were holding back the firm’s profits.

The company’s transaction-banking department is likely the only profitable part of its Platform Services department, Bloomberg reported. The company lost roughly $1 billion on its Apple Card venture in 2021, and lost $2 billion on Apple cards and installment-lending platform GreenSky.

The firm cut roughly 3,000 employees on Wednesday, its most aggressive layoff since 2008, amid declining revenue following a blockbuster 2021. The company had previously cut roughly 500 employees following the reinstatement of performance reviews that were suspended amid the onset of the COVID-19 pandemic and the boom in mergers and acquisitions that soon followed.

Goldman Sachs declined to provide a more detailed breakdown of the performance of its various divisions to the Daily Caller News Foundation.

Content created by The Daily Caller News Foundation is available without charge to any eligible news publisher that can provide a large audience. For licensing opportunities of our original content, please contact licensing@dailycallernewsfoundation.org.

Support Conservative Daily News with a small donation via Paypal or credit card that will go towards supporting the news and commentary you've come to appreciate.

Related Articles

Back to top button