The company apparently wants to end its partnership with Apple.
(Photo: Reuters)
Denver Goldman Sachs is apparently looking for ways to end its partnership with Apple. The American newspaper “Wall Street Journal” and the US stock exchange broadcaster CNBC reported on Friday.
The much-publicized collaboration between Wall Street Bank and the iPhone maker includes an Apple credit card and an announced savings account that pays credit card users comparatively high interest rates. Goldman only announced the savings account in April. The cooperation with Apple should actually last until 2029.
The bank is apparently also looking for a way out for the credit card that Goldman issues together with the car manufacturer General Motors (GM). Discussions are currently underway with American Express to acquire both Apple’s and GM’s cards, the reports said. However, it is still unclear whether an agreement will actually be reached. However, the bank apparently intends to keep the savings accounts offered by Goldman’s online subsidiary Marcus. Goldman could not be reached for comment.
The reports come as Goldman prepares to exit retail banking anyway. Originally, the bank wanted to invest billions in the savings account, personal loan and credit card business to be less dependent on the volatile investment banking and securities trading business. But the strategy didn’t work. In January, Goldman CEO David Solomon said that its push into retail banking had caused losses of more than $3 billion since 2020.
Shareholders should brace themselves for more bad news. Goldman also wants to sell lender GreenSky, which the bank acquired for $2.2 billion in 2021. With fintech valuations currently well below where they were two years ago, analysts estimate there could be large writedowns if sold.
Solomon has been criticized for months for failing to venture into retail banking. “In addition, he has not yet provided a good answer to the question of what the future strategy will look like,” says a former bank employee. At the investor day at the end of February, Solomon focused on the asset and wealth management division, AWS for short. It is to be the “central growth driver” in the future. However, industry experts point out that competitors such as archrival Wells Fargo and many other US banks began expanding their wealth management business years ago. It is therefore not easy to quickly gain market share here.
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