(CTN News) – Goldman Sachs wants to withdraw from its partnership with Apple Card, which has the bank backing the Apple Card and other financial services offered by Apple.
As it turns out, it’s not hard to guess why the bank lost money on the deal: recent filings from the bank indicate that it has lost at least $1 billion on it.
The bank allegedly intends to sell the business to another megabank in order to get rid of it.
Apple Card wants Goldman Sachs to stop being the bank
Although the credit card is named Apple Card, it actually comes from Goldman Sachs and is issued by them. It is also important to remember that the bank stores the money in Apple Cards Savings accounts as well as assisting Apple in its Pay Later program.
Despite all this business, Goldman Sachs is not generating profits from any of it. Quite the contrary, in fact.
The Apple Card division of the company has lost over $3.03 billion over the last three years, according to a recent report published by the company.
A large part of that can be attributed to the use of credit cards.
There has been a change in the bank and now they want out. It is in negotiations with American Express to take over the financial services provided by Apple via American Express, according to the Wall Street Journal.
It is reported that the newspaper cited unnamed “people familiar with the Metter” as the source for the story.
It is not clear when or whether a deal with Amex will be finalized, according to people familiar with the conversation, and transferring the partnership could take some time under any circumstances,” the Wall Street Journal reports.
The most important thing, however, is that Apple would have to sign off on any contract that would allow these services to be handed off to another financial institution.