NEW YORK – Federal officials are investigating Goldman Sachs’ credit card practices, part of the investment bank’s growing consumer business, the company disclosed yesterday.
The probe, launched by the Consumer Financial Protection Bureau, concerns “the application of refunds, crediting of nonconforming payments, billing error resolution, advertisements and reporting to credit bureaus,” Goldman said in a securities filing.
The New York financial giant said it is cooperating with the investigation.
Goldman’s credit card business includes a much-touted Apple credit card, first launched in 2019.
Goldman established its Marcus online bank offering in the United States in 2016 as an effort to diversify its revenue stream following regulatory measures on trading enacted after the 2008 financial crisis.
Goldman reported nearly US$12 billion (RM53.5 billion) in outstanding loans in its credit card business as of the end of June 2022, more than twice the level from a year earlier.
In the most recent quarter, Goldman reported profits of US$2.8 billion following an 8% slide in revenues to US$11.9 billion.
However, revenues in consumer and wealth management jumped 25% to US$2.2 billion. – AFP, August 5, 2022
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