الإثنين, 30 أيلول/سبتمبر 2019 09:00

Goldman’s Big Bet on Consumers is Failing

Written by
Rate this item
(1 Vote)

(New York)

Over the last few years, Goldman Sachs has undertaken one of the biggest bets in its history. It is trying to change its DNA as a pillar of high finance to become a broad financial services company that includes a large consumer-facing business. This led to the launch of its new business, Marcus, which is a consumer investment and lending unit. So far, the results have not been pretty. The bank has lost about $1.3 bn from investing in Marcus, and the default rates on its loans have been much higher than average, causing it to pull back from the space somewhat. It has also caused a lot of internal tension at the bank, with many senior partners leaving as the company completely overhauls itself. On the positive side, the bank has pulled in $50 bn in consumer deposits, which is a new source of funding it never thought it would have access to.


FINSUM: Goldman’s stock is still at 2014 levels. That says it all.

Read 2282 times

Contact Us

Newsletter

اشترك

Subscribe to our daily newsletter

Top