Goldman Sachs consumer unit to have losses of more than $1.2 billion this year

The logo for Goldman Sachs is seen on the New York Stock Exchange NYSE in New York City.

People with knowledge of the matter said that the bank's consumer unit will have losses of more than $1.2 billion this year, according to a projection by Reuters -- Goldman Sachs Group Inc.

The burn rate in the second quarter is in line with those forecasts, according to the report. The report said the bank will have to set aside more provisions for loan losses as the economy sputters due to the addition of new business lines, pandemic effects and a surge in costs.

Wall Street's premier investment bank is in the process of reshaping itself and boosting its consumer banking business in order to reduce its reliance on trading and investment banking revenues.