Goldman Sachs anticipates $400 million impact in Q3 due to consumer business overhaul
Goldman Sachs is set to take a $400 million pretax hit to its third-quarter results as it continues to unwind its consumer business. CEO David Solomon announced that the bank will incur this hit as it unloads its GM Card business and a separate portfolio of loans. This move is part of Goldman’s strategy to shift away from consumer operations, which began in late 2022. The bank experienced write-downs related to selling parts of the business, particularly its credit card business, including the Apple Card. Instead, Goldman is focusing on asset and wealth management to drive growth. Additionally, trading revenue for the quarter is expected to decline by 10% due to challenging market conditions.
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Emily Jensen, graduated from the London School of Economics and Political Science (LSE) in the UK in 2015 with a degree in Economics. She specializes in financial markets and international trade. After graduating, she worked as an analyst at an investment bank in London, where she developed expertise in global economic trends. She later transitioned into consulting, focusing on fintech ventures and providing insights into global economic developments. Emily is passionate about the intersection of finance and technology and aims to drive innovation in the financial sector.