Goldman Sachs to post $400 million hit to third-quarter results as it unwinds consumer business

Published On Sep 9, 2024, 6:09 PM

Goldman Sachs is set to report a pretax loss of approximately $400 million in its third-quarter results due to a continued unwinding of its consumer business. CEO David Solomon announced that the bank is divesting from its GM Card business and a portfolio of loans, leading to lower revenues. Additionally, trading revenue is expected to decline by about 10% due to challenging market conditions. This decision follows Goldman's struggle to compete in the consumer finance sector, which has resulted in significant losses and regulatory challenges, prompting a shift back to asset and wealth management.

Read full article

Stock Forecasts

GSView GS chart on TradingView

Negative

Goldman Sachs is facing significant headwinds in its consumer business operations, particularly with the divestment and losses incurred. Although the strategy to pivot back to asset and wealth management may eventually stabilize operations, the immediate financial hit and decline in trading revenue suggest further negative sentiment in the short term.

Related News

Goldman-backed Starling Bank hit with $38.5 million fine for financial crime prevention failures

Oct 2, 2024, 6:03 AM

London's Financial Conduct Authority said it has fined Starling "for financial crime failings related to its financial sanctions screening."

GS

Bank stocks rise on Fed rate-cut rally

Sep 19, 2024, 11:20 AM

US bank stocks surged Thursday following a jumbo rate cut from the Federal Reserve, a sign of bullishness among investors who now expect an easing of monetary policy will boost Wall Street giants and smaller regional lenders.

GS
JPM
BAC
KRE

Apple is in talks with JPMorgan for bank to take over card from Goldman Sachs

Sep 17, 2024, 3:03 PM

While the talks are early and could falter, the move could mean that the country's largest credit card issuer may be about to grow even larger.

JPM
GS