- Goldman Sachs Group Inc (NYSE:GS) is facing expanded scrutiny of its credit-card business beyond the Consumer Financial Protection Bureau (CFPB) to include other government agencies.
- Goldman Sachs said last year that the CFPB is looking into its credit-card practices, including how it resolves incorrect bills and processes refunds, Bloomberg reported.
- The probe also examines advertisements and how Goldman credits “nonconforming payments” and reports information to credit bureaus.
- In September, Bloomberg reported that Goldman Sachs’ consumer banking unit, Marcus, is under Federal Reserve scrutiny and faced several weeks of questions and follow-ups from the central bank’s officials.
- The bank tied up with Apple Inc (NASDAQ: AAPL) and General Motors Co (NYSE: GM) and entered the business in 2019 with the launch of the Apple Card, later adding the General Motors card business.
- Its credit-card balances climbed to $16 billion at the end of 2022, double the year-earlier amount.
- In January, Federal Reserve is reportedly investigating Goldman Sachs’ consumer business and whether the division exercised appropriate oversight as it ramped up lending.
- The Fed is probing the unit to determine whether it has management or governance problems.
- GS Price Action: Goldman Sachs shares are down 0.27% at $362.55 on the last check Friday.
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