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

Goldman Sachs volition station a astir $400 cardinal pretax deed to third-quarter results arsenic the slope continues to unwind its ill-fated user business.

CEO David Solomon said Monday astatine a league that by unloading Goldman's GM Card business, arsenic good arsenic a abstracted portfolio of loans, the slope would station a deed to revenues erstwhile it reports results adjacent month.

It is the latest turbulence related to Solomon's propulsion into user retail. In precocious 2022, Goldman began to pivot away from its nascent user operations, opening a series of write-downs related to selling chunks of the business. Goldman's recognition paper business, successful peculiar its Apple Card, allowed accelerated maturation successful retail lending, but besides led to losses and friction with regulators.

Goldman is alternatively focusing connected plus and wealthiness absorption to assistance thrust growth. The slope was successful talks to merchantability the GM Card level to Barclays, The Wall Street Journal reported successful April.

Solomon besides said Monday that trading gross for the 4th was headed for a 10% diminution due to the fact that of a pugnacious year-over-year examination and hard trading conditions successful August for fixed-income markets.