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Q: The article doesn't say much on this point, but are there any hints about why Goldman was losing so much money on consumer lending at a time when other lende
by jxf 3y ago
Q: The article doesn't say much on this point, but are there any hints about why Goldman was losing so much money on consumer lending at a time when other lenders seem to be doing comparatively better?
- gumby 3y agoI think it's a combo of not having a culture for it and that the margins in that space are lower than that of their other lines of business. Apple is the master of entering new LOBs always with (only when) they can get the same margins they do on the rest of their business. Remember how people laughed at the price of the iphone? They didn't care -- the target was 1% of the phone business: the profitable part.
- ender341341 3y agofrom previous readings, some of it's "we're counting potential future loses as current loses" but post pandemic lots of lenders are starting to feel some squeeze.