Tuesday, May 14, 2024
Goldman considers ending Apple partnership, consumer business retreats.

Goldman considers ending Apple partnership, consumer business retreats.

Goldman Sachs Considers Ending Partnership with Apple

Goldman Sachs is reportedly contemplating ending its partnership with Apple as part of its plan to withdraw from its consumer-lending business. The Wall Street Journal has revealed that the American investment bank is now in talks with American Express about potentially taking over the Apple credit card and other related initiatives.

Goldman Sachs’ Failed Venture into Consumer Lending

In 2016, Goldman Sachs made a move into consumer financial products. However, the bank’s venture into consumer lending has proven to be unprofitable. As recently as February, Chief Executive David Solomon expressed that Goldman Sachs was exploring strategic alternatives for its consumer-lending business.

The Current Situation and Potential Partners

Goldman Sachs has suffered losses exceeding $3 billion since 2020 in its consumer push. In April, the bank collaborated with Apple to introduce a high-yield savings account. They also recently announced support for Apple’s “buy now, pay later” offering. However, sources familiar with the matter revealed that Goldman Sachs is now looking to transfer the Apple credit-card partnership to American Express (AXP). There have also been discussions regarding the potential transfer of the bank’s card partnership with General Motors (GM) to American Express or another issuer.

While Apple is aware of the ongoing talks, a transfer would require their agreement.

Reactions and Market Impact

Goldman Sachs, Apple, and American Express declined to comment on the reports. After the news broke, Goldman Sachs’ stock finished the trading session with a minor decline of 0.2%. Meanwhile, Apple’s stock recorded a gain of 2.3%, and its market capitalization crossed $3 trillion, making it the first company in the world to achieve such a valuation.


The future of Goldman Sachs’ partnership with Apple remains uncertain. As the bank continues to evaluate its consumer-lending business, discussions with American Express could potentially lead to a new arrangement for the Apple credit card and related initiatives.

For further information, please contact Joe Woelfel at joseph.woelfel@barrons.com.


About Eamon Connor

Meet Eamon Connor, a master of all things business, entrepreneurship, finance, and investing! With a passion for leadership and management, he shares invaluable insights on how to excel in the online business space, make money online, and stand out in the world of marketing and advertising. With Eamon's guidance, you'll be well on your way to startup success!

Check Also

Indigo Physiotherapy welcomes you for business.

Indigo Physiotherapy welcomes you for business.

Open for Business: Indigo Physiotherapy Frederick The Frederick News-Post invites new storefront businesses in Frederick …

Leave a Reply

Your email address will not be published. Required fields are marked *