As reported in the Financial Times, the US Federal Reserve has expressed concerns over Goldman Sachs' partnerships with fintech firms, particularly in its transactional banking division (TxB), citing such issues as inadequate due diligence and monitoring processes when accepting high-risk non-bank clients.
Through TxB, Goldman provides banking infrastructure to fintech firms, including Stripe and Wise. According to people familiar with the matter, the division has shied away from fintech clients since the warning was issued. Notably, some TxB employees had reportedly expressed worries internally over a tendency to minimize risks prior to the Federal Reserve's involvement.
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