financetom
Business
financetom
/
Business
/
Goldman Sachs faces US CFPB fine over credit card business, WSJ reports
News World Market Environment Technology Personal Finance Politics Retail Business Economy Cryptocurrency Forex Stocks Market Commodities
Goldman Sachs faces US CFPB fine over credit card business, WSJ reports
Oct 22, 2024 12:41 PM

(Reuters) -Goldman Sachs ( GS ) is facing a fine in the tens of millions of dollars from the U.S. Consumer Financial Protection Bureau over its credit card business, the Wall Street Journal reported on Tuesday, citing people familiar with the matter.

The consumer watchdog's enforcement action is tied to an investigation into Goldman's customer service operations with a focus on the Apple credit card partnership, the report said.

The enforcement action is expected to come this week, the report said, adding that the total penalties including customer reimbursements could be over $50 million.

Goldman Sachs ( GS ) and the CFPB declined to comment on the report.

In 2022, Goldman had disclosed that its credit card business was being investigated by the CFPB and other government bodies.

The investigations included scrutiny of the bank's credit card management practices, refunds and billing error resolution, the bank had said at the time.

The fine would come as Goldman continues to struggle exiting its ill-fated consumer business two years after stepping back from it.

Goldman's card partnership with Apple is also facing an uncertain future, with Wall Street titan JPMorgan in talks to replace the bank as the tech giant's credit card partner, Reuters had reported.

The bank recently exited its credit card partnership with automaker General Motors, which earlier this month struck a deal with Barclays.

Last week, Goldman booked a $415 million hit that included a writedown related to the transfer of the credit business to Barclays.

The writedown was the latest in a string of losses from Goldman's consumer banking foray, which had aimed to broaden the bank's revenue beyond its traditional mainstays of investment banking and trading.

The bank has since shifted its focus onto its traditional mainstays.

Comments
Welcome to financetom comments! Please keep conversations courteous and on-topic. To fosterproductive and respectful conversations, you may see comments from our Community Managers.
Sign up to post
Sort by
Show More Comments
Related Articles >
Buffett's Berkshire offloads $228.7 million worth BofA shares in latest sale
Buffett's Berkshire offloads $228.7 million worth BofA shares in latest sale
Sep 11, 2024
(Reuters) - Warren Buffett's Berkshire Hathaway ( BRK/A ) has sold shares worth $228.7 million in Bank of America ( BAC ), as the conglomerate continues to trim its stake in the second-largest U.S. lender. Berkshire, late on Tuesday, disclosed it has sold about 5.8 million BofA shares between Sept. 6 and Sept. 10. That takes the total sale of...
Bank of Canada Needs to Step Up The Easing Pace, Says National Bank
Bank of Canada Needs to Step Up The Easing Pace, Says National Bank
Sep 11, 2024
08:09 AM EDT, 09/11/2024 (MT Newswires) -- Some forecasters, including the Bank of Canada, had high hopes of an economic recovery and a stabilization of the unemployment rate in the second half of the year, in the wake of interest rate cuts, noted National Bank of Canada. For several months now, the bank said it has been arguing that, although...
Rentokil Initial Expects Slower North America Revenue Growth; Shares Tumble Pre-Bell
Rentokil Initial Expects Slower North America Revenue Growth; Shares Tumble Pre-Bell
Sep 11, 2024
08:11 AM EDT, 09/11/2024 (MT Newswires) -- Rentokil Initial ( RTO ) said in a regulatory filing Wednesday it now expects North American organic revenue growth of about 1% in H2. In July, the company said it expected organic revenue growth in its North American business to be at the lower end of a 2% to 4% range for the...
Gogo, Duncan Aviation Complete First Installation of Galileo HDX System on Bombardier Challenger 300
Gogo, Duncan Aviation Complete First Installation of Galileo HDX System on Bombardier Challenger 300
Sep 11, 2024
07:59 AM EDT, 09/11/2024 (MT Newswires) -- Gogo ( GOGO ) said Wednesday it has completed the first installation of its Galileo HDX system on a Bombardier Challenger 300 in partnership with Duncan Aviation. The installation on the aircraft involved adding a fuselage-mounted antenna, connecting power from the aircraft to the antenna, and running a data line back to the...
Copyright 2023-2026 - www.financetom.com All Rights Reserved