Goldman Pandemic Loans Spur Scrutiny From Senate’s Brown, Warren
- Democrats Brown, Warren zero in on dividends in letter to CEO
- Bank says lending volumes were up and it’s ‘proud’ of support
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The Senate Banking Committee is questioning whether Goldman Sachs Group Inc. paid dividends at the expense of lending to businesses and households during the pandemic as lawmakers take a broad look at the support big banks offered clients to get through the economic slump.
Committee Chairman Sherrod Brown and fellow Democrat Elizabeth Warren sent Goldman Chief Executive Officer David Solomon a letter late last week, asking how its banking unit made use of a temporary weakening of capital requirements last year, a move regulators intended to spur lending. The lawmakers asked him to produce data on the unit’s lending and on Goldman’s distribution of cash to shareholders.