Financial services giant Goldman Sachs Group, Inc. GS is reportedly looking to sever its ties with Apple, Inc. AAPL.
What Happened: Goldman is in talks to offload the Apple credit card and other jointly operated ventures with the tech giant to American Express Company AXP, the Wall Street Journal reported, citing people familiar with the matter.
The rumor comes as a surprise as Goldman partnered with Apple for a high-yielding savings account for Apple card users earlier this year. The two companies also collaborate on Apple’s Pay Later in the U.S., which allows users to split purchases into four installments spread over six weeks with no interest and fees.
The publication also noted that Goldman is in discussions about transferring its card partnership with General Motors Corp. GM to Amex or another issuer.
Why It’s Important: If Goldman goes ahead and calls it quits with Apple, it would mark the end of its consumer lending operation, the Wall Street Journal reported. The bank has reportedly stopped extending personal loans and is in the process of finding a buyer for home improvement lender GreenSky, which was bought in 2022.
Breaking ties with Apple would pour cold water on Goldman’s quest to become a full-service bank.
Goldman’s first brush with consumer business was through the Marcus high-yield savings account it began offering in 2016. The Apple partnership was forged three years later.
The rumored transaction is not a given, as Apple may have to agree to the transfer of the Apple card business to Amex. The report also said the transfer will likely take time.
Goldman ended Friday’s session down 0.17% to $322.54, according to Benzinga Pro data.