Goldman Sachs CEO David Solomon during an interview on an episode of “The David Rubenstein Show: Peer-to-Peer Conversations” on August 6, 2024 in New York.
Gina Moon | Bloomberg | Getty Images
Goldman Sachs The bank continues to shrink its ill-fated consumer business and is on track to post a pretax loss of about $400 million in its third-quarter results.
Chief Executive Officer David Solomon said at a conference on Monday that the sale of Goldman’s GM Card business and a separate loan portfolio will hit earnings when the bank reports results next month.
It’s the latest turmoil related to Salomon’s push into consumer retail. In late 2022, Goldman began pivoting away from its nascent consumer business, initiating a series of impairments tied to the sale of large portions of the business. Goldman’s credit card business, particularly the Apple Card, enabled rapid growth in retail lending but also sparked losses and friction with regulators.
Goldman has been focusing on assets and wealth management to fuel growth, and the bank was in talks to sell its GM Card platform. BarclaysThe Wall Street Journal reported in April.
Solomon said on Monday that third-quarter trading revenue is expected to fall 10 percent due to weaker year-over-year performance and tough trading conditions in the bond market in August.
