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Goldman Sachs slips on report that the Fed is investigating its Marcus business

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David Solomon, Chairman & CEO of Goldman Sachs, speaking on Squawk Box at the WEF in Davos, Switzerland on Jan. 23rd, 2023. 

Adam Galica | CNBC

Goldman Sachs shares came under pressure Friday after a Wall Street Journal report said the Federal Reserve is investigating the bank’s consumer business.

Shares slipped nearly 3% on the news. Goldman Sachs is now up less than 1% on the year.

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The regulator is looking into whether Goldman Sachs had the right safeguards in place to protect consumers when it increased lending in the division, also known as Marcus, according to the Journal report which cites sources familiar with the matter.

The Fed was previously reviewing Marcus, Bloomberg news reported in September.

“As we told the Wall Street Journal, the Federal Reserve is our primary federal bank regulator and we do not comment on the accuracy or inaccuracy of matters relating to discussions with them,” a spokesperson from Goldman Sachs told CNBC.

Just days ago, Goldman CEO David Solomon admitted that the bank suffered a disappointing quarter in part because it took on too much in the consumer banking business.

Last week, the New York-based investment bank posted its largest quarterly earnings miss in more than a decade, showing falling revenue and rising expenses.

— CNBC’s Yun Li and Hugh Son contributed reporting

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