How Goldman Sachs Fumbled Credit Cards, Personal Loans and More | WSJ
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- เผยแพร่เมื่อ 24 มิ.ย. 2024
- When Goldman Sachs entered the credit card space in 2019 with a partnership with Apple, many consumer banks were concerned that a new competitor had emerged. But just four years later, the firm is pulling back. The banking giant’s move from Wall Street to Main Street came at a time when Goldman wanted to diversify its funding sources. It introduced a high-yield savings account with Marcus and rolled out personal loans. But what was the turning point that led them to start to retreat from this space?
WSJ explains why Goldman Sachs entered consumer finance and what the firm pulling back means for the company as a whole.
0:00 Goldman Sachs isn’t used to failing
0:20 Entering the consumer space
2:22 Acceleration of consumer finance efforts
3:32 Turning point
4:55 Goldman’s retreat
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Why not give it a few more years then make a sound judgement. This obsession with short termism is crazy
Quarter quarter quarter... some businesses take a decade to mature.
Change is moving too quickly for investors to allow growth. Experts and professionals can see that the end is near, for many reasons. And I think most people are just waiting to see what fails first, and how they can protect themselves. Also, the reasons "the end is near" are global reasons, not specific to the US. And what end? Probably an end to the current state of most global economic systems. Within 10 years.
Bottom line, they took on too much risk too quickly. It’s good marketing to brand that as a strategic fail. It’s up to us as consumers to call out that circulated and deliberate deception.
None of this is good marketing. They failed. They admitted they failed publicly. Where's the circulated deliberate deception? Were you expecting them to bleed tears?
When market was running rampant during last Administration, they saw opportunities to give money to people to invest in the market in bitcoin pipe dream and other pop like gamestop.
They knew all along that they will get bailout. 😂
@@mayhemrcworx621 No senior manager thinks like that, or they'll be immediately removed by more greedy shareholders
Nothing's a certainty and even if a bail out is possible, a corporation is not forgiving to staff which threaten it's existence.
We think senior management is about power and money, when in reality it's about a desperate struggle to influence the masses with no clear view of what that will result in. It's a massive gamble where your entire career could be wiped clean by a single mistake.
Money and power is not potent enough at that level to be worth pursuing. Instead it's about influence, connection, and delusions.
Turst me, the big payout, regards of how big, is never worth it. These people are already massively rich. The payout means they failed. It means their 5 years of extremely difficult work was a failure. Another yacht isn't going to fix that.
For people with no wealth and power, it's easy to misunderstand.
Was kind of ridiculous looking at their market entry from the outside. It would have been way easier for them to acquire an already established company and just do a rebranding job instead of trying to grow it organically. Oh well, their loss with their current management.
They did buy greensky . I think they should give it a few more years then decide what's the path forward. This decision to scrap it off is too short sighted I feel
No one will forget how Goldman Sachs ate Euro just to manipulate the USD there and kept USD hegemony. Goldman Sach is also the owner of the fed.
@@MSDGroup-ez6zklol no if Goldman owned the Fed they would slash the rates to 0, they are getting hurt right now.
@@erlinghaaland5716🎉🎉
Acquiring a business seems like a great idea until you weigh the costs of integrating the technology platforms, regulatory reporting, operations, etc. into your existing business even though it'll (eventually) bring some cost savings.
Sometimes its cheaper and cleaner to build.
You just have to make sure that (a) you're chasing the right product and market and (b) you have competent business and tech leaders to guide you through the process
Most company failures are caused by leadership’s oversized egos
Example Trump
Yes. Like the many companies moving into making movies. Almost never works out
As long as the executives can fail retain their positions and compensation packages, we can be sure that everything will be OK.
It truly is shocking that a firm that's been associated with manipulating markets for stocks, commodities, bonds as well as paid billions for the 2008 mortgage fraud they committed didnt resonate well with the common folk and no rush to get their credit cards occurred from lowly retail people.
Apple card was a super asset. If they couldn't make it with that, they will never make it.
Seems like another normal day in the reckless world of US finance.
We need to bring back Glass-Steagall Act
Drop in the bucket for them, and who knows what information theyve obtained to apply to the future.
Look, they saw an opportunity, tried it, didn't work and realized that and moved on. That's called life.
thats not banking though. You can't really make these kind of mistakes.
@@quinnhart1557 So you have to be perfect? And we know perfection is impossible. So...? Maybe people who think we shouldn't make mistakes are making a mistake.
Wow. The complete lack of any morality here. It's folks like this that cheered on Iraq and deregulation. They own things like homelessness & the failed Republican War on Terror.
Goldman Sachs' foray into consumer lending has been called a financial and strategic failure, with the bank losing billions in the last few years. Although consumer lending only accounts for about 3% of the company's revenue, it raises questions about flawed decision-making when Goldman entered the consumer space. Goldman built its consumer business from scratch by hiring experienced executives from the consumer lending world, the tech sector, and its own bank. However, executives disagreed with decisions the company was making and began leaving, and the consumer effort evolved into a "science experiment." The bank's shareholders also grew frustrated as expenses were incurred to build out different products and staff up. The investment banking business also slowed in 2022, making it matter if a business unit had a lot of expenses and wasn't contributing to earnings. In the fall of 2022, Goldman reorganized, moving a big chunk of consumer lending into a separate unit, revealing how much it had been costing the company.
I have a Gm card and Marcus customer service is a joke. I stopped using the card it was so bad. You can’t pay your bill via check and not pay a late fee.
exactly- Their interest rates were the highest in the nation , even for great credit scores ! Should be called Goldman Clowns !!
1
Who the fk pays with a check 😂😂😂
@@sweetsilly9362 You will be when the grid goes down !!! Do you know how to start a fire without electricity? LOL
Consumer banking was forced on Goldman Sachs in 2008 in lieu. Hence, its consumer lending failure is not surprising❗️🫨
You don't think a Wells Fargo analyst being the only analyst to comment on Goldman's strategy to provide a bias?
Announced today that they’re selling they’re PFM business, gotta love it
150 billion deposits... is that their real aim? I.e fractional banking means they could use 100+ billion to trade in securities?
Wealth management is very different from doing consumer lending is it?
I wonder where's Fabulous Fab now! :D
They gave me a big unsecured loan at 6% interest last fall when the writing was on the wall rates were rapidly increasing :)
A bank made a poor decision what a surprise.
Love how the other contributor is a Wells Fargo employee, obviously aren’t going to paint Goldman in the best light….
Should have let go of the regional banks instead of acquiring it.
Why do these big financial institutions have such poor stoploss on their investments? Don't they monitor their positions and investments on a regular basis?🙄🤔🤔🙄 Big shoutout to all the retail traders and investors who always maintain a small, fair and acceptable stoploss on their trades and investments.😎😎😎
Because they know that they will be bailed out with taxpayer money if there is a risk of them losing too much money. Socialism for the rich.
No one will forget how Goldman Sachs ate Euro just to manipulate the USD there and kept USD hegemony. Goldman Sach is also the owner of the fed.
My brother in Christ, have you ever seen r/WallStreetBets?!
Marcus is pretty solid HYSA though
2:50 he was very much on board with this idea of ...or
Shareholders taking a loss. Yet the CEO is taking home tens of millions of dollars 🤑🤑🤑
Cause GS made tiny losses in consumer lender, and a massive gains from trading, corporate loans, etc.
3B to GS is like me and you losing 1000 dollars.
Not fine, but not the end of the world either.
3B$ for goldman is like a penny for avergae man
They absolutely did too much too fast and should have been more strategic. The Apple Card was a big loser as it seemed to lend to anyone with a pulse. The GM card did much better but look at the people getting that card versus Apple.
Huh Apple cars is great you get 3% back
150 billion deposits... is that their real aim? I.e fractional banking means they could use 100+ billion to trade in securities or lend to private equity etc?
Time to split too big to fail.
Apple Card was also Apple's first fail.
U go to everyday ppl with GS products, they turnaround and walk right in Macy to get a gift card
Going by the way of First Republic and Silicon Bank..
Seems like GoldmanSachs got out of consumer lending just in time
DJ Sol dropped the ball 🏈 instead of dropping the mic 🎤.
Only a bank could lose money by lending it.
You could lose it too. Just need the person you lent to to not pay you back.
They have missed to add a stop Loss 😂
One would think the CEO would resign. But no. These guys never ever take any responsibility
In my firm, we have grown exponentially because our CEOs initiatives succeeded 85% of the time, but the other r15% of the time it was a failure. His motto is fail fast and try again. It’s why he’s successful. The important thing here is to have a business that can sustain the loss of a failed project and for them it’s not a problem
Will they give the bonuses back from the last 4 years???? That'd be a big no no no no no no😅😅😅😅😅😅😅😅😅😅😅😅
Old man sacs got a shakedown…
An analyst from WELLS FARGO critiqued Goldman Sachs 😂 Skin is thick!
Right?! My thoughts exactly 😊
Anytime there are humans involved there will be mistakes made.
Their interest rates were the highest in the nation , even for great credit scores ! Should be called Goldman Clowns !!
Wrong decision to pull back. The consumer market is always the best market to be in because all businesses ultimately live from the consumer spending. The idea is solid, just not executed well. Once they realised that, they should have improved the execution instead of pulling out. Now all the investments really will be written off as a loss and the project is declared as failed. Shame...
Your reminder that these execs should be in prison...and the WSJ protects them.
Goldman Sachs should be broken up, they have toxic power over the world.
strategy of hiding robbed money
Run up all the unsecured debt you can right now.
Dauphin River First Nation Manitoba Canada 🇨🇦
Morgan stanley success in wealth management? really?
No one will forget how Goldman Sachs ate Euro just to manipulate the USD there and kept USD hegemony. Goldman Sach is also the owner of the fed.
And just like that Apple gave up on them too
Dont wory. DJ D-Sol can turn it around but he needs to spin some disc and rave in some club first😂
The majority of ppl who work in these places are arrogant and rude ppl to put it nicely. They had it coming
Apple Card !
"Strategic Fail" 😂😂😂😂
For the Apple Card, it didn’t seem like a good idea to give out credit card to anyone that applied for it.
that’s not the issue
No one will forget how Goldman Sachs ate Euro just to manipulate the USD there and kept USD hegemony. Goldman Sach is also the owner of the fed.
Lake St. Martin First Nation Manitoba Canada 🇨🇦
This explains why trading (7/24/2023-current) has been absolutely perfect! The market is never perfect. How's that whatsapp going? It is just individuals, not the company....lol. Keep fixing things!
Yet again, bad decisions and no repercussions.
Also, "Marcus" is a terrible name, no pizazz
$3Bn is nothing for a company with $1.5 TRILLIION under management. This is a click bait story.
Good god
Too big to fail
Goldman failed for sure but taking opinion from wells fargo analyst. Seriously.
The ceo need to go
He cares more diversity and wokeness rather than hiring based on merit
Hardly. He's more interested in being a DJ rock star and bathing in the glory of being a GS CEO. Solomon knows he's got it made for the rest of his life and doesnt give AF anymore.
I just say too confident (read: arrogant)
GS fumbled
Wavering nice gg tho
Goldman Sachs also discriminates against disabled employees
Goldman/ kinzinger for president
Why can't she speak normally without all the dance moves?
Early squad!
Tim Cook saying "We call it the Apple Card" to much applause just looks more and more like a ridiculous cult being ridiculous as time passes. Great choice of clips!
I had the exact same thought at that moment. How brainwashed are these people?? It was like they'd filled the audience with performing seals that were trained to clap.
Need to get rid of the drug using dj ceo
Couldn't bring myself to watch till the end. Annamaria face expressions plus her hyped up gesticulations put me off
Girl math with a vocal fry.
another bad look.....humm..
♿🙄 "show me the door... "
Greed
Because Jamie dimon winner
i dont like the reporters way of speech
Do you think you will survive the experience?
@@minmaxwax It sounds like someone is suffering whilst speaking it is uncomfortable to ears
No one will forget how Goldman Sachs ate Euro just to manipulate the USD there and kept USD hegemony. Goldman Sach is also the owner of the fed.
I own a *Private Bank*. ✅
Usury is haram according to bible
toxic masculine firm
No. It was Their interest rates were the highest in the nation , even for great credit scores ! Should be called Goldman Clowns !!
1
Say, ˹O Prophet,˺ “It has been revealed to me that a group of jinn listened ˹to the Quran,˺ and said ˹to their fellow jinn˺: ‘Indeed, we have heard a wondrous recitation.
It leads to Right Guidance so we believed in it, and we will never associate anyone with our Lord ˹in worship˺.
˹Now, we believe that˺ our Lord-Exalted is His Majesty-has neither taken a mate nor offspring,
and that the foolish of us used to utter ˹outrageous˺ falsehoods about Allah.
We certainly thought that humans and jinn would never speak lies about Allah.
And some men used to seek refuge with some jinn-so they increased each other in wickedness.
Pb now they are distributing Cash since 2020 and For Si Talal this is Riba( wa MAATAYTOM MINE RIBA LE.) One kind of Riba , tremendous price increase, then either shortage of some commodities( inflation) and/ or deflation 9f others like Real estate( overstock and dead stock) then Global Crisis
Hopefully they lose everything. These are the true enemy of the ppl
Stick to your knitting, every Goldman employee or former employee think they are the smartest person in the room. Hubris takes down another and Solomon is a clown CEO.