More Cracks Are Emerging in Goldman Sachs' Consumer Banking Division. Should Investors Be Worried?
Not long ago, Goldman Sachs' (NYSE: GS) consumer banking efforts led by its digital bank Marcus received lots of praise for its ability to quickly bring in lots of new customers and deposits.
The small but growing consumer bank was seen as a key way for the longtime investment banking powerhouse to diversify and stabilize its earnings. But in recent months as interest rates have been ascending rapidly and the economic outlook has deteriorated, the unit has started to run into problems.
Recently, media outlets reported that the consumer bank has lost about $4 billion since launching in 2016. Reports also surmised that Marcus' checking account launch might be delayed, and now even more cracks are beginning to show. Should investors be worried?
Source Fool.com
