THE RIGHT MOVE: It’s taken them a whole lot longer than it should have, but Goldman seems to be figuring things out at last.
But there’s still some cleanup left to be done!
“GOLDMAN SACHS DISCLOSES EXPANDEDPROBE INTO ITS CREDIT CARD BUSINESS
“Goldman Sachs Group Inc. said that investigations and inquiries into its credit-card business have expanded beyond the Consumer Financial Protection Bureau to include other government agencies.
“The bank, which has card tie-ups with Apple Inc. and General Motors Co., made the disclosure in a regulatory filing Friday. It had said last year that the CFPB is looking into its credit-card practices, including how it resolves incorrect bills and processes refunds. The probe also is examining advertisements and how Goldman credits “nonconforming payments” and reports information to credit bureaus.
“The bank was cooperating with the investigation, a spokesman for the New York-based firm said in August. Bloomberg News reported in September that the bank was facing scrutiny from the Federal Reserve into its consumer business that went beyond its normal course-of-business review.” [Emphasis added.]
I assume that any card-related violations Goldman committed were the result of inexperience rather than malice—but am still amazed that no one at the firm ever ventured the opinion early on that the idea of Goldman competing against the likes of Bank of America and Capital One in unsecured consumer lending was preposterous in the extreme. P.S. The rump of Goldman’s consumer business still won’t be profitable for another two years? Crazy.