Goldman Sachs faces big writedown on GreenSky deal

GOLDMAN Sachs is likely to take a large writedown for its US$2.2 billion acquisition of fintech lender GreenSky after seeking to divest the business it bought in 2021, CNBC reported on Friday (Jun 23), citing people with knowledge of the sale process.

Bids for Greensky, which facilitates home improvement loans to consumers, are coming in well below Goldman’s expectations, the report added.

Shares of Goldman were down 1 per cent in early trading.

“We’re pleased with the participation by bidders, we’re in the middle of the process and we’ll learn more as we go forward,” a Goldman spokesperson said in an emailed statement to Reuters, without revealing any details about the potential writedown it is expected to take.

The bank has been running a sale process for GreenSky, and may take a writedown on the US$500 million of goodwill, or the premium it paid above the assets’ book value, Goldman president and chief operating officer John Waldron told investors at a conference in June.

Apollo Global Management, Sixth Street and Warburg Pincus were among the initial bidders for GreenSky, according to media reports. REUTERS