Goldman’s consumer unit, Marcus, has so far lost $1.3 billion; big lenders like JPMorgan Chase and Amex are making loans for small-ticket items like clothes and cosmetics.
Charlie Scharf’s most immediate priorities will be mending fences with regulators and getting the bank out from under a Fed-imposed asset cap. But he also must come up with strategies for spurring revenue growth and reining in expenses.
JPMorgan, which led the offering, may have “enabled” the startup’s questionable behavior; the system may enable more people to get approved for mortgages.
How do you keep the all-male CEO club at the biggest banks intact? Let us count the ways. Could a woman be the next CEO at UBS? Maybe. At Wells Fargo? Less likely.
The consumer agency is investigating Bank of America over “potentially unauthorized” accounts; why fintech rollouts are magnets for fraud; KeyCorp’s Beth Mooney to retire next year; and more from this week’s most-read stories.
Mooney was the first woman to lead a top-20 U.S.-based bank. Gorman, the Cleveland company's vice chairman and president of banking, will replace her on May 1.
