A broken boiler; a broken wing; one episode of root canal surgery. Whenever life treats you badly, Goldman Sachs will be there.
Lloyd Blankfein, chief executive officer of the Bank of Wall Street, took to CNBC on Monday night to talk about Marcus, the consumer lending business the bank launched with fanfare last October.
Asked by Jim Cramer, the host of Mad Money, Mr. Blankfein said the business had so far been a big hit, crashing into $ 1 billion in loans issued and on track to hit $ 2 billion. dollars by the end of this year. People had delivered on Goldman’s promise to save them “three, four, five hundred basis points” on the interest rates they were paying on credit card balances, Mr. Blankfein said. by not charging any fees of any kind.
âWe have studied this a lot,â he said. âAnd we had a lot of sessions. We spoke to thousands of people as we developed this product. And I have told consumers and users about it. And I’ll tell you, they are really good people. Great people. They’re – that’s had a little, you know, rain in their life. Or clouds. Or a need that has arisen. You know, you have to fix a roof. You have to work, you know, on your teeth or on your children’s orthodontics.
Marcus – named after the bank’s founder – is part of a push by the bank to find new sources of revenue as its core business is constrained by tighter regulation, a shift to electronic platforms, and uneven activity among large corporations and investors. Comprised of veterans of consumer-focused businesses like American Express and Discover Financial Services, the company will face Lending Club and Prosper, the two San Francisco-based upstarts who have grown rapidly in recent years.
Mr. Blankfein stressed that “there is a lot of room for us to get a great return,” noting that the bank offers unsecured loans of up to $ 30,000.
âOf course, if it weren’t for the benefit of the consumer, we wouldn’t have our place and had no role,â he said.
“But we’re going to grow, you know, we’re going to grow this thing.”