Goldman Sachs' Consumer Banking Experiment Ends with a $400 Million Loss

Goldman Sachs is set to take a $400 million pre-tax hit in the third quarter due to the unwinding of its General Motors credit card platform and the sale of real estate loans. The bank is in talks to hand over its GM credit card business to Barclays, a deal that would see the transfer of roughly $2 billion in card balances. Goldman's foray into consumer banking has been a costly experiment, with the unwinding of its Main Street businesses losing the firm millions in recent quarters. The bank's decision to abandon its consumer banking dreams marks a significant pivot, with the industry's biggest players increasingly focusing on lending and deposit-taking. Goldman's traders are facing a tougher market, with trading revenue down 10% year-on-year in the third quarter due to market disruption and muted activity levels.