Goldman Sachs is moving forward with plans to exit the consumer credit business, is considering whether to end its partnership with Apple, and is in talks with American Express to acquire its Apple credit card and other initiatives, The Wall Street Journal reported.
Goldman Sachs (GS) foray into consumer finance products began in 2016. However, the bank’s foray into consumer lending has been a money-losing venture, and Chief Executive David Solomon said as recently as February that Goldman Sachs was “considering…”
Goldman Sachs is moving forward with plans to exit its consumer lending business, is considering whether to end its partnership with Apple, and is in talks with American Express to acquire its Apple credit card and other initiatives, The Wall Street Journal reported.
Goldman Sachs’ (GS) foray into consumer finance products began in 2016. However, the bank’s foray into consumer lending has been a costly endeavor, and as recently as February, CEO David Solomon said Goldman Sachs was “considering strategic alternatives “. for business.
Goldman Sachs has lost more than $3 billion since 2020 on its consumer offensive.
In April, Wall Street company and tech giant Apple (AAPL) launched a high-yield savings account. Goldman Sachs also recently announced support for Apple’s Buy Now, Pay Later offering. But according to the Journal report, which quoted people familiar with the discussions, Goldman Sachs now intends to outsource Apple’s credit card partnership to American Express (AXP). The bank has also discussed transferring its card partnership with General Motors (GM) to American Express or another card issuer, some people told the Journal.
Apple has been informed of the talks that have been going on for months, the Journal reported. Apple would have to agree to a transfer, the Journal noted.
Advertisements – Scroll to continue
Barron’s has reached out to Goldman Sachs and Apple for comment. American Express told Barron’s Saturday that it would not comment on the report.
The Journal report was released after market close on Friday. Goldman Sachs ended the session down 0.2%. Apple closed up 2.3% and its market cap surpassed $3 trillion, becoming the first company in the world to close at that valuation.
Write to Joe Woelfel at [email protected]