Federal Reserve Probes Goldman’s Consumer Business

The Federal Reserve is investigating Goldman Sachs consumer business to determine whether the bank had appropriate safeguards in place as it ramped up lending.

The Fed is looking into whether Goldman has exercised appropriate oversight over Marcus and whether it has management or governance problems.

The regulator is also examining what happened in instances of customer harm, including whether issues were flagged internally and, if they were, whether they were properly resolved, they said.

The probe encompasses Goldman’s compliance functions, as well as audit and legal.