Goldman Sachs is still considering exiting its partnership with Apple as losses continue to mount, a new report details. from The Wall Street JournalGoldman Sachs will lose $400 million this quarter due to a slowdown in its consumer business.
Speaking at a conference this week, Goldman Sachs CEO David Solomon said the $400 loss was mainly due to the sale of General Motors' credit card partnership and real estate loans, which are reportedly being sold to Barclays along with about $2 billion in card balances.
Goldman Sachs has lost more than $6 billion in total pre-tax losses “across most of its consumer lending businesses, including credit cards” since the beginning of 2020. As previously reported, several factors contributed to Goldman's huge losses tied to Apple Card, including a credit loss rate that was nearly double that of other credit cards.
Goldman Sachs had planned to use the Apple Card to bolster its expansion into consumer banking, but over the next few years the bank decided to exit the consumer business altogether, including consumer loans and other services.
Looking to the future, Goldman Sachs is still considering moving away from its partnership with Apple, which consists of the Apple Card and the Apple Card Savings Account, which currently has a total of $17 billion in credit card balances. The Wall Street Journal Goldman Sachs has said that GM could face losses even bigger than those from its sale to Barclays if it ends its partnership with Apple.
Last November, The Wall Street Journal Apple “has sent a proposal to Goldman to exit the agreement within approximately the next 12 to 15 months,” the report said. The current fate of that proposal is unclear. Goldman had previously been reported to be in talks with American Express and Synchrony Financial about acquiring the Apple Card business.
Follow the opportunity: thread, Twitter, Instagramand Mastodon.
FTC: We use automated affiliate links that generate revenue. more.
