On August 31, the media reported that U.S. banking regulators raised related risk and compliance concerns about Goldman's partnership with fintech companies.。

Following a warning from the Federal Reserve earlier this year, a division of Goldman's transaction banking (TxB) has stopped contracting with riskier fintech clients, according to people familiar with the matter。The Fed raised a number of questions about Goldman Sachs, including deficiencies in related due diligence and monitoring processes when accepting high-risk non-bank customers.。

In addition, regulators have criticized Goldman Sachs for providing banking infrastructure for fintech clients, including payments startups Stripe and Wise.。However, TxB's other operations providing cash payment services were not affected.。

Some TxB employees have warned internally that Goldman Sachs has a tendency to minimize the risks in these businesses, according to people familiar with the matter.。At present, Goldman Sachs has investigated an internal complaint submitted by an employee of the department.。

TxB is part of Goldman's platform solutions business, which is designed to help corporate clients move money and provide banking infrastructure for fintech companies without U.S. bank licenses.。

The investigation into Goldman's TxB business comes as the Federal Reserve conducts a broad regulatory review of non-bank financial players。

New Jersey-based Cross River Bank is one of the few largest lenders to fintech companies in the U.S.。In April, the bank was criticized by federal regulators for "unsafe, unsound banking practices."。Blue Ridge Bank, another Virginia-based bank, was highlighted by regulators last year for similar problems.。

For Goldman, however, the volatility in the business has had little impact on the company, as the business is only a small part of the company's overall business。Goldman Sachs aims to earn 7% of its revenue by 2024..About $500 million, compared to $47 billion in total revenue reported by Goldman Sachs last year。

Although it had little impact on the company as a whole, the incident was another setback for Goldman Sachs' efforts to diversify its business。

Because the TxB business, which the Fed raised concerns about Goldman Sachs, happens to be one of several growth businesses that Goldman Sachs CEO David Solomon has set for Goldman Sachs.。

Salomon previously said: "Transaction banking is an opportunity to leverage our exceptional corporate franchise, world-class risk management and innovation culture to build modern digital products, and in the process diversify our revenue and financing portfolio.。But now, regulators have stepped in and let Solomon's ambitious expansion plans take a hit.。

Among the several growth directions proposed by Solomon at the time, retail banking was also included。But last year, Goldman Sachs decided to cut its Marcus online retail banking business.。

Goldman Sachs, under Salomon, also acquired a consulting firm in 2019 and restructured it into Personal Financial Management (PFM) in its Registered Investment Advisor (RIA) division as a way to open up the market for high net worth individuals.。But in light of the business's weaker-than-expected development, Goldman Sachs earlier this week agreed to sell its $29 billion PFM business to Kansas-based Creative Planning, in a deal that is expected to close in the fourth quarter of this year.。After that, Goldman will focus on serving the super-rich in financial management, while abandoning mass-market high-net-worth individuals.。

Frequent setbacks in Goldman's efforts have also raised concerns。

"I expect 2023 to be a failed year for Goldman Sachs.。According to RBC Capital Markets banking analyst Gerard Cassidy, "Whether they do it in the third or fourth quarter, they need to be prepared for more write-offs or other issues."。"

Although some of the business development is not very smooth, but fortunately Goldman Sachs's "basic plate" - ultra-high net worth person wealth management business is stable enough.。Solomon, though not a good "expansionist," was definitely a good "keeper."。Goldman shares have risen 43% since Solomon became CEO in October 2018。That's better than all the Wall Street rivals except Morgan Stanley。As a result, Solomon was able to serve as CEO of Goldman Sachs for up to five years.。It is reported that Goldman Sachs is currently planning to expand its core wealth business, keep the "basic plate."。