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Goldman Sachs is expected to face a significant fine from the U.S. Consumer Financial Protection Bureau related to its credit card business, according to sources familiar with the matter. The enforcement action stems from an investigation into Goldman’s customer service operations, specifically its partnership with Apple for the Apple credit card. The fine, which could exceed $50 million including customer reimbursements, is anticipated to be announced this week.
In 2022, Goldman disclosed that its credit card business was under scrutiny by the CFPB and other regulatory bodies. The investigations focused on the bank’s credit card management practices, refunds, and billing error resolution. This penalty comes as Goldman continues to grapple with the challenges of exiting its consumer business, which it started scaling back from two years ago.
Recently, the bank terminated its credit card partnership with General Motors, which subsequently entered into a new agreement with Barclays. As part of this transition, Goldman incurred a $415 million charge. This writedown is just the latest in a series of losses from Goldman’s consumer banking endeavors, prompting the bank to refocus on its core businesses of investment banking and trading.
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Emma Collins, graduated in Financial Economics from the University of Chicago in the USA in 2016. She has since worked at an asset management firm in New York, where she specializes in investment strategies and portfolio management. Emma has a keen interest in financial analysis and has published several articles in renowned financial journals. Her work focuses on providing actionable insights to investors, and she is known for her forward-thinking approach to managing financial portfolios.
