What Went Wrong for Goldman Sachs' Consumer Banking Efforts?
In 2016, the investment banking powerhouse Goldman Sachs (NYSE: GS) launched a consumer banking business that would gather deposits, provide online investing capabilities, and issue personal and credit card loans.
The goal was to diversify Goldman's earnings and make them more durable. While Goldman has a great investment banking business, the earnings can be volatile from year to year, which is why the market doesn't assign the business a high valuation. Consumer banking earnings tend to be more consistent and draw higher multiples from the market.
But about six years after the launch of its consumer business, Goldman is pivoting and taking a big step back from its consumer banking ambitions, which have turned into a bit of a disaster. Here's what went wrong.
Source Fool.com
