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• Losses have occurred due to the addition of new business lines, pandemic effects, and expense bleed
Goldman Sachs' (NYSE: GS) internal projections show that the consumer business losses accelerated to more than $1.2 billion, this year.
Bloomberg reported that the addition of new business lines, pandemic effects, and expense bleed have resulted in losses for Goldman. New accounting rules would also force the firm to set aside more money as loan volumes grow.
The report mentioned that the firm is bracing for a 35% drop in earnings, stoking internal debate about the credibility of the projections for its retail business and the risks heading into a challenging economy.
Goldman Sachs is reshaping itself and bulking up its consumer banking business to reduce its reliance on trading and investment banking revenues.
Source - Bloomberg
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