/regulation & compliance

News and resources on regulation, compliance, legal and governance issues for banks and fintechs.

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.

Be the first to comment

Fed warns Goldman over fintech unit risk - FT

Editorial

This content has been selected, created and edited by the Finextra editorial team based upon its relevance and interest to our community.

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.

Sponsored [Webinar] Exploring the ethics of AI in banking

Comments: (0)

[Webinar] Payment Orchestration: Remaining Relevant in Today’s MarketFinextra Promoted[Webinar] Payment Orchestration: Remaining Relevant in Today’s Market