Goldman Sachs’ embattled full-time boss — and part-time deejay — David Solomon tried to put a positive spin Tuesday on the company’s failed foray into consumer banking.
Solomon, who recently laid off more than 3,200 workers in what was dubbed “David’s Demolition Day,” was pounded with questions from Wall Street analysts about the bank’s struggles.
Most significantly, how Goldman fumbled its handling of Marcus, the online retail banking operation that was shut down after failing to generate profits.
“Sometimes we fall short,” Solomon said during the company’s second-ever investor day presentation at Goldman’s 200 West Street global headquarters. “Sometimes we don’t execute. But we always learn and adapt.”
Solomon revealed the mega-bank is mulling “strategic alternatives” for its laggard consumer business but did not elaborate on any options. The consumer banking division has lost more than $3 billion since 2020.
“I wish you would appreciate we’re not in a position to provide more information than we have,” said Solomon, who has also gotten grief over his side hustle as DJ-Sol.
In one heated exchange, Wells Fargo bank analyst Mike Mayo asked why Solomon didn’t just “call it a day” and close down the consumer business entirely.
Goldman is “one of the greatest of all time, but this [consumer business] has hurt your reputation,” Mayo said. “Michael Jordan tried Minor League Baseball after basketball but gave it up… why can’t Goldman give up the consumer bank?”
Solomon emphasized the bank would continue to focus on its core franchises — and “would’ve said more if there was more to say.”
Goldman declined to comment beyond Solomon’s comments.
Marcus was merged with the company’s asset and wealth management division last year into a new arm named Platform Solutions. While the bank has stopped its unsecured lending, it continues to operate transaction banking, credit cards and a fintech company it acquired named GreenSky.
Global head of Platform Solutions Stephanie Cohen underscored Solomon’s comments that the consumer bank was struggling — and said it wouldn’t break even until 2025.
Executives also emphasized the three core strategies the bank is focused on moving forward, including growing wallet share and financing in banking and markets, growing management fees in asset and wealth management, and delivering profitability in platform solutions.
Goldman shares fell nearly 3% after the investor day Q&A to close trading at $355.30.
Aside from the layoffs, Goldman slashed bonuses by as much as 90%. Many junior bankers — who last year raked in well into the six figures — received just $10,000 or $15,000, The Post previously reported.
[Written in collaboration with other media outlets with information from the following sources]
