Goldman Sachs mulls 'strategic alternatives' for consumer business after shortfall

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Goldman Sachs Group Inc's Chief Executive David Solomon said the bank is considering 'strategic alternatives' for its consumer business after stumbles led to billions of dollars in losses.

"Sometimes we fall short," Solomon told investors at the company's New York headquarters. "Sometimes we don't execute. But we always learn and adapt."

"Goldman is realizing that it lacks the potential to reach scale in some parts of its consumer strategy," said Mark Narron, an analyst at Fitch Ratings. "Although it’s unclear which specific assets could be targeted for divestiture, the leading consumer lenders or card issuers would be the obvious potential buyers," he said.Goldman shares fell 2.75% on Tuesday, trailing rival big U.S. banks. Some analysts blamed the lack of clarity around plans for the consumer business.

After cutting 3,200 jobs this year, Goldman has stopped filling vacancies as employees leave, focusing instead on strategic hires, its finance chief Denis Coleman said. Those measures should reduce payroll costs by $600 million.

 

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