Fed warns Goldman over fintech unit risk - FT


A division of Goldman Sachs' transaction banking business (TxB) has stopped taking on riskier fintech clients after receiving a warning from the US Federal Reserve, according to the Financial Times.

The Fed contacted Goldman with concerns about insufficient due diligence and monitoring processes when accepting high-risk non-bank clients, says the FT, citing sources.The issue relates to a team within TxB responsible for providing banking infrastructure to fintech clients such as Stripe and Wise. TxB’s cash payment services business is not affected.Goldman is aiming to bring in about $750 million in revenue from the TxB business by 2024. It is part of the of loss-making Platform Solutions unit.


By on Fri, 01 Sep 2023 15:17:00 GMT
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