David Solomon, CEO of Goldman Sachs, throughout an interview for an episode of “The David Rubenstein Present: Peer-to-Peer Conversations” in New York on Aug. 6, 2024.
Jeenah Moon | Bloomberg | Getty Pictures
Goldman Sachs will put up a roughly $400 million pretax hit to third-quarter outcomes because the financial institution continues to unwind its ill-fated shopper enterprise.
CEO David Solomon mentioned Monday at a convention that by unloading Goldman’s GM Card enterprise, in addition to a separate portfolio of loans, the financial institution would put up successful to revenues when it studies outcomes subsequent month.
It’s the newest turbulence associated to Solomon’s push into shopper retail. In late 2022, Goldman started to pivot away from its nascent shopper operations, starting a collection of write-downs associated to promoting chunks of the enterprise. Goldman’s bank card enterprise, particularly its Apple Card, allowed fast progress in retail lending, but additionally led to losses and friction with regulators.
Goldman is as a substitute specializing in asset and wealth administration to assist drive progress. The financial institution was in talks to promote the GM Card platform to Barclays, The Wall Road Journal reported in April.
Solomon additionally mentioned Monday that buying and selling income for the quarter was headed for a ten% decline due to a tricky year-over-year comparability and troublesome buying and selling circumstances in August for fixed-income markets.
