Goldman Sachs expects over $1.2 billon losses from consumer unit this year

Goldman Sachs has started giving its workers globally an additional 10 days of leave to assist them in taking care of children or older relatives hit by the coronavirus. The US bank told employees that they were allowed the extra time off to manage the “unique individual circumstances related to the intense impact of Covid-19”. Bentley de Beyer, who took over as head of human capital management at Goldman in January, sent a note to the team telling them about the extra leave. “To encourage employees, we will now offer 10 days of family leave to our people worldwide to attend to family members, as required, due to Covid-19-related illness or childcare obligations, including homeschooling,” de Beyer addressed in the memo

Goldman Sachs Group Inc's internal projections show the bank's consumer unit will record losses of more than $1.2 billion this year, Bloomberg News reported on Tuesday, citing people with knowledge of the matter.

The burn rate in the second quarter is in line with those forecasts, according to the report. A spokesperson for the bank did not immediately respond to a Reuters request for comment.

The losses stem from the addition of new business lines, pandemic effects and a surge in costs, the report said, adding that the bank will also be forced to set aside more provisions for loan losses as the economy sputters.

Wall Street's premier investment bank has been in the process of reshaping itself and bulking up its consumer banking business in a bid to reduce its reliance on trading and investment banking revenues.