David Solomon, chief executive officer of Goldman Sachs Group Inc., during a Bloomberg Television at the Goldman Sachs Financial Services Conference in New York, US, on Tuesday, Dec. 6, 2022.
Michael Nagle | Bloomberg | Getty Images
Goldman Sachs said Wednesday that it agreed to sell its fintech lending platform GreenSky to a group of investors led by private equity firm Sixth Street.
The deal, which includes a book of loans created by Goldman, will result in a 19 cents per share reduction to third-quarter earnings, Goldman said in the statement. The New York-based bank is scheduled to disclose results on Tuesday.
The move is the latest step CEO David Solomon has taken to retrench from his ill-fated push into consumer finance. Under Solomon’s direction, Goldman acquired GreenSky last year for $1.7 billion, overruling deputies who felt the home improvement lender was a poor fit. Months later, Solomon decided to seek bids for the business amid his broader move away from consumer finance. Goldman also sold a wealth management business and was reportedly in talks to offload its Apple Card operations.
“This transaction demonstrates our continued progress in narrowing the focus of our consumer business,” Solomon said in the release. The bank is now focused on its core investment banking, trading and asset and wealth management operations, he added.
Read more: Goldman Sachs faces big writedown on CEO David Solomon’s ill-fated GreenSky deal
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