Goldman Sachs Faces Huge Losses from Credit-Card Blunders 💳💥 | Why Did They Enter This Market?

hi this is the big insight and today we will be discussing Goldman Sachs big credit card problem the firm is facing mounting losses as it tries to exit the credit card business revealing a $400 million pre-tax hit this loss is part of Goldman's larger struggle to offload its Main Street lending business the bank CEO David Solomon cited lacks underwriting standards as a key issue Goldman Sachs entered the credit card Market through Partnerships with General Motors and apple to leverage its brand and Technology however problems emerged as high charge off rates operational difficulties plague its Consumer Credit programs a charge off occurs when a lender deems a debt as unlikely to be collected and writes it off as a loss in the context of credit cards High charge off rates mean that a significant portion of the credit card balances is considered uncollectible and is therefore written off by the bank The Lax underwriting aimed at attracting a broader customer base has backfired on them Goldman is now looking at options to sell off their consumer products but even those that are interested or skeptical