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2023-01-13

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Loss of $3 billion in the past three years! Goldman Sachs' newly formed consumer finance arm is losing money

在转型消费金融的过程中，高盛付出了惨痛代价。

Loss of $3 billion in the past three years! Goldman Sachs' newly formed consumer finance arm is losing money

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Goldman Sachs' newly formed consumer finance arm is losing money","url":"https://stock-news.laohu8.com/highlight/detail?id=1187472513","media":"华尔街见闻","summary":"在转型消费金融的过程中，高盛付出了惨痛代价。","content":"<p><html><head></head><body>Author: Zhao Ying</p><p>The \"King of Wall Street\" can't play consumer loans, and is losing more and more money in this business.</p><p>On Friday, Goldman Sachs' 8-K filings disclosed at the US Securities and Exchange Commission showed that,<b>Its platform solutions division (Fintech and consumer finance businesses) suffered pre-tax losses of more than $1.2 billion from January to September 2022, and losses are accelerating every quarter.</b></p><p>According to the documents, from the beginning of 2020 to the end of September, the platform solutions segment suffered a cumulative loss of $3 billion. When the latest quarterly data is released next week,<b>The three-year cumulative loss is expected to be close to $4 billion. Looking at the amount of credit loss reserves, the loss last year will reach $2 billion.</b></p><p>This business lately originated from Goldman Sachs CEO Solomon's \"retail banking dream\". In 2016, Goldman Sachs launched Marcus, a consumer banking business, to provide retail consumers with products such as loans, savings and certificates of deposit. It also provides consumers with credit card Apple Card through cooperation with Apple.</p><p>However, the development process of Goldman Sachs' consumer finance business is very bumpy, with leadership changes, regulatory investigations and sharp rises in losses. Due to soaring costs and difficulties in establishing new business lines, Goldman Sachs launched the largest restructuring in history last October to spin off its consumer finance business.</p><p>Goldman Sachs merged its four business units into three, investment banking and trading business, asset management and wealth management, and platform solutions department (including the business for corporate customers in retail banking, Fintech platform investment business, GreenSky, a professional lender, and its cooperative business with Apple Card and General Motors).</p><p>Among them, investment banking and trading businesses may be the only businesses that are profitable.</p><p><b>In addition, the media quoted</b><b>People in the know</b><b>Pointed out that the $1 billion pre-tax loss reported by the Platform Solutions segment in 2021 was primarily related to Apple Card</b>, they said the loss of about $2 billion in 2022 was caused by Apple Card and installment loan platform GreenSky.</p><p>Goldman's overall consumer business had initially been expected to break even by the end of last year, and executives in the platform solutions unit now predict that the unit could achieve that sometime in 2025, according to people familiar with the matter, but the final situation is yet to be determined.</p><p>At the same time, facing the pressure of huge losses, Goldman Sachs CEO Solomon is looking for other ways to reduce spending. This week, Goldman Sachs kicked off the largest layoffs in history and considered reducing the bonus pool of employees in the investment banking department by at least 40%. At the same time, it launched the largest cost reduction plan since the financial crisis, targeting the new technology department, consumer department and other aspects, and pointing out that it evaluated various expenses from purchasing private jets to travel, meetings and even external suppliers.</p><p></body></html></p>","source":"live_wallstreetcn","collect":0,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Loss of $3 billion in the past three years! Goldman Sachs' newly formed consumer finance arm is losing money</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 12.5px; color: #7E829C; margin: 0;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nLoss of $3 billion in the past three years! Goldman Sachs' newly formed consumer finance arm is losing money\n</h2>\n<h4 class=\"meta\">\n<p class=\"head\">\n<strong class=\"h-name small\">华尔街见闻</strong><span class=\"h-time small\">2023-01-13 22:44</span>\n</p>\n</h4>\n</header>\n<article>\n<p><html><head></head><body>Author: Zhao Ying</p><p>The \"King of Wall Street\" can't play consumer loans, and is losing more and more money in this business.</p><p>On Friday, Goldman Sachs' 8-K filings disclosed at the US Securities and Exchange Commission showed that,<b>Its platform solutions division (Fintech and consumer finance businesses) suffered pre-tax losses of more than $1.2 billion from January to September 2022, and losses are accelerating every quarter.</b></p><p>According to the documents, from the beginning of 2020 to the end of September, the platform solutions segment suffered a cumulative loss of $3 billion. When the latest quarterly data is released next week,<b>The three-year cumulative loss is expected to be close to $4 billion. Looking at the amount of credit loss reserves, the loss last year will reach $2 billion.</b></p><p>This business lately originated from Goldman Sachs CEO Solomon's \"retail banking dream\". In 2016, Goldman Sachs launched Marcus, a consumer banking business, to provide retail consumers with products such as loans, savings and certificates of deposit. It also provides consumers with credit card Apple Card through cooperation with Apple.</p><p>However, the development process of Goldman Sachs' consumer finance business is very bumpy, with leadership changes, regulatory investigations and sharp rises in losses. Due to soaring costs and difficulties in establishing new business lines, Goldman Sachs launched the largest restructuring in history last October to spin off its consumer finance business.</p><p>Goldman Sachs merged its four business units into three, investment banking and trading business, asset management and wealth management, and platform solutions department (including the business for corporate customers in retail banking, Fintech platform investment business, GreenSky, a professional lender, and its cooperative business with Apple Card and General Motors).</p><p>Among them, investment banking and trading businesses may be the only businesses that are profitable.</p><p><b>In addition, the media quoted</b><b>People in the know</b><b>Pointed out that the $1 billion pre-tax loss reported by the Platform Solutions segment in 2021 was primarily related to Apple Card</b>, they said the loss of about $2 billion in 2022 was caused by Apple Card and installment loan platform GreenSky.</p><p>Goldman's overall consumer business had initially been expected to break even by the end of last year, and executives in the platform solutions unit now predict that the unit could achieve that sometime in 2025, according to people familiar with the matter, but the final situation is yet to be determined.</p><p>At the same time, facing the pressure of huge losses, Goldman Sachs CEO Solomon is looking for other ways to reduce spending. This week, Goldman Sachs kicked off the largest layoffs in history and considered reducing the bonus pool of employees in the investment banking department by at least 40%. At the same time, it launched the largest cost reduction plan since the financial crisis, targeting the new technology department, consumer department and other aspects, and pointing out that it evaluated various expenses from purchasing private jets to travel, meetings and even external suppliers.</p><p></body></html></p>\n<div class=\"bt-text\">\n\n\n<p> source：<a href=\"https://wallstreetcn.com/articles/3679833\">华尔街见闻</a></p>\n\n\n</div>\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"https://static.tigerbbs.com/1b3684302211042d481cacf9066fbcca","relate_stocks":{"GS":"高盛"},"source_url":"https://wallstreetcn.com/articles/3679833","is_english":false,"share_image_url":"https://static.laohu8.com/cc96873d3d23ee6ac10685520df9c100","article_id":"1187472513","content_text":"作者：赵颖“华尔街之王”玩不转消费贷，在这一业务上亏损越来越大。周五，高盛在美国证券交易委员会披露的8-K文件显示，其平台解决方案部门（Fintech和消费金融业务）在2022年1-9月份，税前亏损超过12亿美元，而且每季度亏损都在加速。文件显示，从2020年初到9月底，平台解决方案部门亏损累计达30亿美元。当下周最新一季度的数据发布后，预计三年累计损失将接近40亿美元。从信贷损失准备金数额的来看，去年损失将达到20亿美元。这一业务最新源于高盛CEO所罗门的“零售银行梦”，2016年高盛推出消费者银行业务Marcus，向零售消费者提供贷款、储蓄和存单等产品，还通过与苹果公司的合作向消费者提供信用卡Apple Card。然而，高盛消费金融业务发展过程十分坎坷，领导层更替、监管调查、亏损大幅攀升。由于持续飙升的成本和建立新业务线困难重重，高盛在去年10月推出史上最大规模重组，分拆消费金融业务。高盛把四大业务部门合并为三个，投资银行和交易业务、资产管理和财富管理以及平台解决方案部门（包括零售银行中面向企业客户的业务、Fintech 平台投资业务、专业贷款机构 GreenSky 以及其与苹果公司（Apple Card）、通用汽车的合作业务）。其中，投资银行和交易业务可能是唯一盈利的业务。此外，媒体援引知情人士指出，平台解决方案部门2021年报告的10亿美元税前亏损主要与Apple Card有关，他们表示2022年约20亿美元亏损是由Apple Card和分期贷款平台GreenSky导致的。高盛的整体消费者业务最初曾预计将在去年年底实现收支平衡，知情人士称，平台解决方案部门的高管们现在预测，该部门可能在2025年的某个时候实现这一目标，但最终情况尚未确定。与此同时，面对巨额亏损的压力，高盛CEO所罗门正在寻求其他方式来缩减支出，本周高盛拉开史上最大规模裁员的序幕、并考虑将投行部门员工奖金池缩减至少40%后，同时启动了金融危机以来最大规模的降本计划，矛头直指新技术部门、消费部门等各方面指出，评估从购置私人飞机到差旅、会议乃至外部供应商的各项费用。","news_type":1,"symbols_score_info":{"GS":0.9}},"isVote":1,"tweetType":1,"viewCount":3010,"commentLimit":10,"likeStatus":false,"favoriteStatus":false,"reportStatus":false,"symbols":[],"verified":2,"subType":0,"readableState":1,"langContent":"EN","currentLanguage":"EN","warmUpFlag":false,"orderFlag":false,"shareable":true,"causeOfNotShareable":"","featuresForAnalytics":[],"commentAndTweetFlag":false,"andRepostAutoSelectedFlag":false,"upFlag":false,"length":2,"xxTargetLangEnum":"ORIG"},"commentList":[],"hasMoreComment":false,"orderType":2}