First, Goldman Sachs Group Inc. Chief Executive Officer David Solomon said it. Then President John Waldron repeated it. Next, it was the bank’s Stephanie Cohen who reiterated that the bank is considering strategic alternatives for its consumer lending business.
The trio of references hinted that Goldman is weighing a potential sale among strategic options for its consumer platforms, which are housed in its new Platform Solutions division.
Goldman’s top executives made their comments in back-to-back presentations at the bank’s second-ever investor day on Tuesday, as it offered investors reasons to stick around even amid a slumping stock price and a troubled retail-banking foray that hurt earnings. The retail effort has lost nearly $6 billion since it was set up, prompting Goldman to dismantle the plan in its original form and denting confidence in the bank in the process.
In one notable update, Goldman said it would take another two years to just break even on the new division. Cohen, who leads the unit, said the segment contains “attractive businesses” that leverage the core strengths of Goldman. Still, she said the bank will be flexible and nimble, considering strategic alternatives as it drives toward profitability.
“We’ve narrowed ambitions in the consumer space,” Solomon said in response to a question about plans for the division. “We will do what’s right for Goldman Sachs, we’re focused on it and we will execute appropriately.”
This article was provided by Bloomberg News.