Tag: credit risk

When Goldman Sachs launched Marcus in 2016 and jumped into consumer finance, it generated high hopes and a few questions. Could a storied brand that catered to the elite reach the lowly consumer? Would losses doom the project? Would the bankers strangle the hungry fledgling? Six years later, as it announces Marcus is being scaled back, the answer to all three is yes. Marcus was Goldman’s bold bid to build a new revenue stream that was less volatile than the firm’s trading and advisory businesses. Unlike Goldman’s old partnership structure, where weathering business cycles was the norm, public shareholders wanted steady revenue and profits. Credit cards, mortgages and other consumer produ... Read More