Goldman’s push into consumer banking was one of the biggest changes in the firm’s 154-year history. The investment bank had to legally convert itself into a bank holding company in 2008 during the financial crisis to get access to the Federal Reserve’s emergency funding operations. That led to jokes within the industry that the Wall Street titan Goldman Sachs was going to issue something as commonplace as an ATM card.
The online savings account is not going away, and is considered an asset by the firm, Solomon told investors. The firm now holds more than $100 billion in retail deposits, which is a cheap form of capital for the investment bank that historically hasn’t had access to such forms of financing.The personal loan business, launched with great fanfare in 2016 with a broad advertising campaign under the brand Marcus, has been a trouble spot for the bank.
“The Federal Reserve is our primary federal bank regulator and we do not comment on the accuracy or inaccuracy of matters relating to discussions with them,” a Goldman Sachs spokesperson said. One area Goldman isn’t retreating from is its relatively new credit card business, which the firm calls platform solutions. The firm is underwriter for the Apple Card, the popular credit card deeply embedded into Apple Pay that launched in 2019, as well as a co-brand credit card with General Motors. Goldman and Apple announced in October that they were extending their relationship until the end of the decade.
Sounds like they're planning another heist and this time it'll damage consumer banking.
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