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Goldman Sachs is considering breaking up with Apple after losing billions in the consumer banking squeeze, reports say




Goldman Sachs is considering breaking up with Apple after losing billions in the consumer banking squeeze, reports say

Goldman may end its partnership with Apple.Getty Images

  • Goldman Sachs may be looking to end its partnership with Apple, The Wall Street Journal reported.

  • It began offering an Apple-branded credit card in 201[ads1]9 and more products since then.

  • Goldman has abandoned other elements of its consumer banking business in recent months.

It seems Goldman Sachs may prefer Wall Street to the high street after all.

The investment banking giant has made inroads into consumer loans in recent years, but some of them have been abandoned. Now Goldman is considering breaking up with Apple as well, according to a report from The Wall Street Journal.

In 2019, the bank began offering an Apple-branded credit card, and launched a savings account and “buy now, pay later” service with the tech giant earlier this year.

However, Goldman’s broader consumer efforts have struggled, leading to criticism of Chief Executive David Solomon for his support of efforts to diversify away from its traditional activities.

Solomon said last October that the partnership with Apple had been extended to 2029, but those plans could now change.

On Friday, the Journal cited unnamed sources as saying that Goldman has discussed a deal that would move the Apple offerings to American Express.

CNBC later confirmed the discussions, but both CNBC and the Journal said no deal was imminent. Any change will also require Apple’s approval.

In January, Goldman said it had lost about $3 billion from its consumer banking operations in three years.

The following month, Solomon said the bank was considering “strategic options” but that it had appeared committed to the Apple partnership.

Goldman may also be looking to get out of offering a General Motors-branded credit card, the Journal reported.

Goldman Sachs, Apple and American Express did not immediately respond to requests for comment from Insider, made outside normal business hours.

Read the original article on Business Insider



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