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Apple Pulls Plug on Goldman Sachs Credit Card Partnership


Burgerwars
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Goldman's venture into consumer banking was visibly flailing by late 2022, earlier this year Goldman told Apple they wanted out.  WSJ knows GS talked to AmEx and Synchrony about taking on the portfolio.

 

Goldman was never happy in this; Apple first touted the card as "not from a bank" which GS execs didn't care for; Apple also wanted everyone to get approved which obvs drove up losses for GS (GS blames Apple for increased fed scrutiny of their lending).

 

Plus Apple insisted that all statements go out at the beginning of the month; GS had customer service probs cause of that.

 

So GS looks to accommodate or compensate employees in the Apple cc division, and Apple keeps talking to AmEx and Sync.

 

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2 hours ago, Burgerwars said:

I just saw this but can't read it all because of a pay wall. Fill me in.

I would like to know more...about who will take over the savings account and credit card portfolio contracts.

 

“The proposal Apple sent to Goldman Sachs said it could take effect in about 12 to 15 months. The iPhone maker remains committed to its Apple Card credit card and savings account and has no plans to discontinue the products — regardless of whether Goldman Sachs is involved, people familiar with the matter said."

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It was an interesting relationship. Apple could sell more stuff to the iSheep who otherwise couldn't afford iPhones, many with not so good credit, with Goldman Sachs being stuck with billions of dollars in bad debts on the MasterCards. 

 

https://www.foxbusiness.com/markets/apple-pulls-plug-goldman-credit-card-partnership.amp

 

Edited by Burgerwars
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Since Apple is looking at 12 to 15 months out to pull the plug, I have to wonder when the existing card will be closed to new applications.

 

With delinquencies on the up tick in general, I don't see any issuer wanting to take on a higher than normal steaming pile of bad loans. I'm not sure Sync is even this *Admin prohibits insults that reference an individual's intelligence.*. Bottom line is whoever ends up offering the card, I'm sure the underwriting won't be as liberal.

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Those interested in which bank or entity will take over the Apple Card credit card and Apple savings account portfolio will ask this question... These are just my imaginations and speculations on whoever is the suitor for either product will have to be a dominant big bank. Savings accounts are in the equation, with Citi and Wells Fargo being good candidates to take the helm.

 

OTOH- Synchrony will have problems if Apple savings accounts are used in acquisitions. Could Citigroup be a leading candidate? I'd speculate that the iPhone maker would be delighted if Citibank, a subsidiary of Citigroup, issued the Apple Savings Account and managed and underwritten the Apple Card credit card program.

 

I'm concerned that if Sync, Comenity, or Barclays were to be the helmsman to take charge of the Apple Card program offering, there would be a lot of people unhappy with the transition. Just my 2 cents. 
 

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On 11/29/2023 at 6:18 PM, MP80 said:

Those interested in which bank or entity will take over the Apple Card credit card and Apple savings account portfolio will ask this question... These are just my imaginations and speculations on whoever is the suitor for either product will have to be a dominant big bank. Savings accounts are in the equation, with Citi and Wells Fargo being good candidates to take the helm.

 

OTOH- Synchrony will have problems if Apple savings accounts are used in acquisitions. Could Citigroup be a leading candidate? I'd speculate that the iPhone maker would be delighted if Citibank, a subsidiary of Citigroup, issued the Apple Savings Account and managed and underwritten the Apple Card credit card program.

 

I'm concerned that if Sync, Comenity, or Barclays were to be the helmsman to take charge of the Apple Card program offering, there would be a lot of people unhappy with the transition. Just my 2 cents. 
 

Citi said hell no the first time around; I'd imagine they're patting themselves on the back for dodging the bullet.  Can't see them putting the gun in their mouth this time around.

 

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Just catching up with this thread (went "dark" Wed and just emerged).

 

The death of this partnership has been in the cards for so long, this post produced the most profound sense of deja vu on first glance that I've experienced in ages!

 

Seriously, though, don't you intentionally think Apple beat GS to the punch by about 5 min??

 

I'm gonna laugh myself silly if Synchrony emerges as the replacement issuer!  🤪

 

 

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9 hours ago, brainchasm said:

Citi said hell no the first time around; I'd imagine they're patting themselves on the back for dodging the bullet.  Can't see them putting the gun in their mouth this time around.

Citibank will require Apple to ease some of its contract restrictions for millions of customers tied to the month-end statements that are due for everyone and to add the term policy to charge late payment fees plus changing variable interest rates based on current market trends. In effect, subprime client accounts need to cathartic cleanup operations.

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7 hours ago, hdporter said:

Seriously, though, don't you intentionally think Apple beat GS to the punch by about 5 min??

Did anyone reminisce of the 2008 recession when Goldman Sachs made anecdotal $30 billion while every financial institution and some investment conglomerates bankrupt or needed a bailout, or was subject to the acquisition, or like WAMU sold to Chase penny for a dollar takeover? Goldman Sachs was the only winner in the worst economic downturn meanwhile everybody was a loser and needed TARP for bailout.

 

What goes around and turns around comes to Goldman Sachs! It's time to throw back up after consuming some of those unethical, contradictory, immoral ambivalent gambling bets winning money on both sides from AIG insurance. How despicable to bet on someone losing big-time. But, as they say, it's business nothing personal!

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I wonder how their due diligence goes with checking GS card member database with their own to see what % would end up as a closed account due to internal blacklists and how they will handle joint accounts.   I don't see Apple guaranteeing the accounts so I am guessing many cards might be closed or CLD to a manageable level.  I started out with 7500 then after a year it went 15k then to 20 then on the 3 year they did 40k and every time after that is a you don't spend your current line.

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3 hours ago, coopert said:

I was just remembering when Chase of all people forgave every card they issued in Canada when they exited the market.

https://thepointsguy.com/news/chase-eliminates-debt-canadian-credit-cards/

 

 

I doubt Golden Sachs will just forget about the billions they're owed, bad debts or not.

Chase was just a tiny issuer in Canada. The five big banks there (TD. RBC, CIBC, BMO, Scotiabank) hog most all the market. 

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7 hours ago, coopert said:

I don't see Apple guaranteeing the accounts so I am guessing many cards might be closed or CLD to a manageable level.  I started out with 7500 then after a year it went 15k then to 20 then on the 3 year they did 40k.

Goldman Sachs is a great lender to keep with you. I've had the Apple Card since the product launched. A full year ago I added the GM Card as my second credit card with Goldman, totaling $29,000.

 

The Apple Card is primarily used to pay monthly bills, while the GM Card is used occasionally, for small purchases every few months. So far, credit lines have not declined or been reduced, but utilization has barely improved above 1%. I doubt the Apple Card portfolio would be as accommodating if it were managed by someone other than Goldman Sachs, aside from significantly lowering the credit limit, and I hope a generous bank like Bank of America, or a similar magnate takes over the Apple Card portfolio rather than the obtuse Synchrony. :)

 

Bank of America is the second oldest banking financial institution that I do business within my memory after my Wells Fargo mortgage payment. I trust Bank of America more than any other financial company I do business with. Bank of America offers you generous promotional offers as long as you have a good payment history.

 

Like the deal here, consider a direct deposit of $50,000 or more for 12 months if needed. There is a 3% transfer fee, but I don’t need to use it yet. :)

 

 

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  • 3 weeks later...
  • 2 months later...

It's been a while since I've seen a high starting limit for the Apple Card. I have increased my credit limit on my Apple Card by $2000 in 4 years.

 

The not-so-good news is that I’ve recently seen people who were pre-approved for the $3,000 initial launch credit get frustrated and abandon the application.

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One would surmise that if any of those individuals had been inclined to utilize the Apple Card with their prestigious iPhone glued in their hand, they would have acquiesced to the offer and expanded their credit limit over time. Furthermore, they would have the supplementary benefits of transitioning to Capital One or Synchrony upon the acquisition of the contract from Goldman Sachs.


It seems evident that credit counseling could be essential in their circumstances.

 

 

 

 

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