Wells Fargo Securities analyst Mike Mayo argued Goldman Sachs (NYSE:GS) stock “is probably stalled near term” as the Federal Reserve last week reportedly started an investigation into the investment bank’s consumer business, Marcus.

“The investigation, along with poor disclosure and other regulatory investigations, will increase the risk associated with owning GS and its cost of capital,” Mayo wrote in a recent note to clients.

“Regardless of any financial impact, it [the probe] would likely divert some resources away from running the business,” he added. Recall on Jan. 18 when Goldman (GS) CEO David Solomon said the company pushed too quickly into consumer banking.

GS ticked up 0.1% in premarket trading after sliding 6.2% for the week ended Jan. 20.

Similarly, Bank of America Securities analyst Ebrahim Poonawala contended that the news likely will “add to investor frustration with the consumer strategy that has become a drag on ROE/stock,” he wrote in a note.

Nonetheless, Poonawala maintained his Buy rating on prospects that the bank’s struggling investment banking business could improve in the event the Federal Reserve pauses its interest-rate increases.

Take a look at why Seeking Alpha contributor IP Banking Research viewed GS as a Strong Buy.