Goldman Sachs expects losses of over $1.2 billion from its consumer unit

Addressing people familiar with the matter, Bloomberg News reported on Tuesday that internal estimates of Goldman Sachs Group Inc (NYSE:GS) show the bank's consumer unit will lose more than $1.2 billion this year.

Goldman Sachs expects losses of over $1.2 billion from its consumer unit. According to the report, the burn rate in the second quarter is in line with these estimates. (https://bloom.bg/3OlWnkZ) A spokesperson for the bank did not immediately respond to Reuters' request for a comment. The report stated that the losses were due to the addition of new lines of business, the effects of the pandemic and the increase in costs, while it was also stated that the bank would have to set aside more provisions for credit losses caused by the drastic changes in the economy. Wall Street's leading investment bank is in the process of reshaping itself and growing its consumer banking business to reduce its reliance on trade and investment banking revenues.