Goldman Sachs,
furthering plans to retreat from its consumer-lending business, has been weighing whether to end its partnership with
Apple
and is in talks with
American Express
about taking over its
Apple
credit card and other initiatives, The Wall Street Journal reported.
The push by
Goldman Sachs
(GS) into consumer financial 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 strategic alternatives” for the business.
Goldman Sachs has lost more than $3 billion since 2020 in its consumer push.
In April, the Wall Street firm and tech giant Apple (AAPL) introduced a high-yield savings account. Goldman Sachs recently also announced support for Apple’s “buy now, pay later” offering. But now, according to the Journal report, which cited people familiar with the discussions, Goldman Sachs is looking to offload the Apple credit-card partnership to
American Express
(AXP). The bank also has discussed transferring its card partnership with
General Motors
(GM) to American Express or another issuer, some of the people told the Journal.
Apple is aware of the talks, which have been ongoing for months, the Journal reported. Apple would have to agree to a transfer, the Journal noted.
Barron’s has reached out to Goldman Sachs and Apple for comment. American Express told Barron’s on Saturday that it wouldn’t be commenting on the report.
The Journal report was published after stock markets closed on Friday. Goldman Sachs finished the session down 0.2%. Apple closed with a gain of 2.3% and its market capitalization crossed $3 trillion, becoming the world’s first company to close with that valuation.
Write to Joe Woelfel at [email protected]
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