Blog: Report: Federal Reserve Reviews Goldman’s Retail Unit, Marcus – PYMNTS.com

The Federal Reserve is reportedly reviewing the operation of Goldman Sachs Group’s retail online banking platform, Marcus, asking questions of Goldman managers in a weeks-long process.

The process is not indicative of wrongdoing, but it goes beyond the regulator’s usual oversight, Bloomberg reported Friday (Sept. 16), citing unnamed sources.

A Goldman Sachs spokesperson told PYMNTS by phone that the company declines to comment.

The report comes about six weeks after Goldman Sachs said it is cooperating with an investigation by the Consumer Financial Protection Bureau (CFPB) into its credit card business.

Read more: CFPB Probes Goldman’s GM, Apple Credit Card Business Practices

In a regulatory filing Aug. 4, the investment banker said the CFPB probe was looking at Goldman’s “credit card account management practices, including with respect to the application of refunds, crediting of nonconforming payments, billing error resolution, advertisements and reporting to credit bureaus.”

The focus of the reported new review by the Federal Reserve — Marcus — has been seeing growing losses. Goldman has struggled for a year to develop its planned online checking accounts for consumers.

See more: Cost, Tech Hurdles May Slow Goldman’s Checking Rollout

Marcus now offers savings accounts and had planned to add the checking account by 2021, but the product’s developers have been unable to overcome technical hurdles.

As PYMNTS reported at the time of Goldman’s quarterly earnings call in July, the company has been broadening its appeal to retail banking customers.

Read more: Goldman Consumer Banking Revenues Grow 25% as Loss Reserves Surge 497%

During the call, Goldman CEO David Solomon noted that the company has been “building a business from scratch” in the consumer segment.

Solomon added that “we have built a really good deposit platform” (the specific levels of deposits at Marcus were not detailed on the call) while maintaining a “long term strategy to create a leading digital platform in consumer banking” that also features credit cards and loans.

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