The Federal Reserve has launched an investigation into Goldman Sachs due to heavy losses in its consumer credit division as a result of Apple's Apple Card business.

CTOnews.com, January 21 (Xinhua)-- the Federal Reserve (The Federal Reserve) has launched an investigation into Goldman Sachs to determine whether its consumer credit department (including Apple Card) has developed and deployed comprehensive consumer protection measures.

Goldman disclosed documents on January 13 that showed huge losses in its consumer business, of which Apple Card was a key loss-making business. CTOnews.com learned that documents show pre-tax losses of more than $1.2 billion for Apple Card in the first nine months of 2022 (currently about 8.136 billion yuan).

Goldman also planned to expand its direct-to-consumer business, Marcus. However, according to a report in the Wall Street Journal on Friday, the Fed is now reviewing whether Goldman Sachs is poorly regulated in its Marcus business.

"We did something right on the consumer platform," David Solomon, chief executive of Goldman Sachs, said on Wednesday. "We are taking on more than we should be taking on too much too quickly."