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Goldman Sachs reconsiders consumer checking plans

Ryan Lawler
Aug 24, 2022
Illustration of a blank check with a pattern of sad faces as the watermark image.
Illustration: Aïda Amer/Axios

Goldman Sachs is reconsidering whether to go ahead with the launch of consumer checking accounts through its loss-making Marcus business unit, Bloomberg reports.

Why it matters: Despite all its resources, Goldman’s consumer unit has struggled to gain traction after more than half a decade in business.

Between the lines: Marcus has posted cumulative losses of $4 billion since inception, per Bloomberg.

  • And those losses are accelerating, as the business unit is on pace to lose more than $1.2 billion this year.

Yes, but: Adding a consumer checking option is unlikely to reverse the losses, as it is a notoriously low-margin business that could bring additional scrutiny to Goldman’s consumer unit.

  • The Consumer Financial Protection Bureau is already investigating Goldman's consumer credit card unit.
  • But the agency is also cracking down on overdrafts and other fees that banks charge consumers, reducing possible new sources of revenue at Marcus.
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