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Goldman discloses probe into U.S. credit card division


FILE PHOTO: David Solomon, Chairman and CEO of Goldman Sachs, speaks at the 2022 Milken Institute Global Conference, in Beverly Hills, California, U.S., May 2, 2022. REUTERS/Mike Blake

(Reuters) – Goldman Sachs Group Inc (NYSE:GS)’s credit card business is being investigated by a top U.S. consumer watchdog, the bank disclosed in a regulatory filing on Thursday.

The investigation by the Consumer Financial Protection Bureau (CFPB) includes scrutiny of the bank’s credit card account management practices, refunds and billing error resolution, according to the filing.

Goldman said it was cooperating with the CFPB.

Under its chief executive officer, David Solomon, the bank has been looking to expand its consumer business as it seeks to diversify its revenue streams beyond trading and investment banking.

The bank has a credit card partnership with Apple Inc (NASDAQ:AAPL), following the launch of a card with the iPhone maker in 2019. It also offers a co-branded credit card with General Motors Co (NYSE:GM).

The Wall Street giant also said it had reduced its credit exposure to Russia by over 13% in the second quarter. Citigroup Inc (NYSE:C), on the other hand, saw its Russia exposure climb by $500 million as the rouble firmed.

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