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Goldman Sachs to post $400M hit in third quarter over consumer business

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David Solomon, CEO of Goldman Sachs, during an interview for an episode of “The David Rubenstein Show: Peer-to-Peer Conversations” in New York on Aug. 6, 2024.

Jeenah Moon | Bloomberg | Getty Images

Goldman Sachs will post a roughly $400 million pretax hit to third-quarter results as the bank continues to unwind its ill-fated consumer business.

CEO David Solomon said Monday at a conference that by unloading Goldman’s GM Card business, as well as a separate portfolio of loans, the bank would post a hit to revenues when it reports results next month.

It is the latest turbulence related to Solomon’s push into consumer retail. In late 2022, Goldman began to pivot away from its nascent consumer operations, beginning a series of write-downs related to selling chunks of the business. Goldman’s credit card business, in particular its Apple Card, allowed rapid growth in retail lending, but also led to losses and friction with regulators.

Goldman is instead focusing on asset and wealth management to help drive growth. The bank was in talks to sell the GM Card platform to Barclays, The Wall Street Journal reported in April.

Solomon also said Monday that trading revenue for the quarter was headed for a 10% decline because of a tough year-over-year comparison and difficult trading conditions in August for fixed-income markets.

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10-year Treasury yield back above 4.6% after mixed jobless claims data

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14 hours ago

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December 27, 2024

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Treasury yields were slightly higher early Friday after a mixed set of data on weekly jobless claims.

The yield on the benchmark 10-year Treasury was 3 basis points higher at 4.607%, slightly down from its peak earlier in the week but back above the 4.6% level it had not breached since May. The 2-year Treasury was fractionally higher at 4.334%.

One basis point is equal to 0.01%. Yields move inversely to prices.

After the Christmas break, jobless claims data released Thursday for the week ending Dec. 21 came in 1,000 lower at 219,000, below the 225,000 consensus forecast from Dow Jones.

However, continuing claims rose by 46,000 for the week ending Dec. 14 to the highest level since November 2021.

The 10-year Treasury yield has risen more than 40 basis points in December as traders anticipate a more hawkish Federal Reserve in 2025. The central bank next meets at the end of January, when a rate hold is expected.

Monthly data on wholesale inventories is due Friday.

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