(Reuters) – The U.S. Federal Reserve is investigating retail banking Goldman Sachs to determine whether it had adequate risk-control tools when it expanded its lending business, The Wall Street Journal reported on Friday, citing sources people close to the file.
Goldman Sachs shares lost nearly 3% on Wall Street following this information.
The Fed is concerned that the investment bank lacked the proper monitoring and control systems within its Marcus unit when it developed this business for retail clients, the WSJ said.
This investigation is an extension of a routine examination of this activity by the Fed in 2021. It also looks at certain cases of harm suffered by customers and their handling by Marcus, the newspaper continues.
A Goldman Sachs spokesman said the bank was not commenting on its discussions with its federal regulator.
(Written by Niket Nishant in Bangalore, French version Bertrand Boucey, edited by Jean-Stéphane Brosse)
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