{"id":78708,"date":"2026-01-10T05:43:23","date_gmt":"2026-01-10T08:43:23","guid":{"rendered":"https:\/\/ubirataonline.com.br\/the-apple-card-headache-for-goldman-sachs-is-almost-over\/"},"modified":"2026-01-10T05:43:23","modified_gmt":"2026-01-10T08:43:23","slug":"the-apple-card-headache-for-goldman-sachs-is-almost-over","status":"publish","type":"post","link":"https:\/\/ubirataonline.com.br\/en\/the-apple-card-headache-for-goldman-sachs-is-almost-over\/","title":{"rendered":"The Apple Card headache for Goldman Sachs is almost over"},"content":{"rendered":"<p><\/p>\n<div>\n<p class=\"yf-vbsvxt\"><!-- HTML_TAG_START -->Goldman Sachs (<a data-i13n=\"cpos:1;pos:1\" href=\"https:\/\/finance.yahoo.com\/quote\/GS\" data-ylk=\"slk:GS;cpos:1;pos:1;elm:context_link;itc:0;sec:content-canvas\" class=\"link\">GS<\/a>) has reached an agreement to move its Apple Card business to Chase (<a data-i13n=\"cpos:2;pos:1\" href=\"https:\/\/finance.yahoo.com\/quote\/JPM\" data-ylk=\"slk:JPM;cpos:2;pos:1;elm:context_link;itc:0;sec:content-canvas\" class=\"link\">JPM<\/a>) in a deal that brings the company one step closer to ending its years-long foray deeper into the consumer banking business that became a headache for the firm.<!-- HTML_TAG_END --><\/p>\n<p class=\"yf-vbsvxt\"><!-- HTML_TAG_START -->\u201cThis transaction substantially completes the narrowing of our focus in our consumer business,\u201d Goldman Sachs CEO David Solomon said Wednesday in a <a data-i13n=\"cpos:3;pos:1\" href=\"https:\/\/www.goldmansachs.com\/pressroom\/press-releases\/2026\/goldman-sachs-announces-agreement-to-transition-apple-card-program-to-chase\" rel=\"nofollow noopener\" target=\"_blank\" data-ylk=\"slk:press release statement;cpos:3;pos:1;elm:context_link;itc:0;sec:content-canvas\" class=\"link\">press release statement<\/a>.<!-- HTML_TAG_END --><\/p>\n<p class=\"yf-vbsvxt\"><!-- HTML_TAG_START -->The deal still requires regulatory approval and isn\u2019t expected to be finalized for two years, but both banks will recognize the hand-off in their fourth quarter earnings that they will report next week.<!-- HTML_TAG_END --><\/p>\n<p class=\"yf-vbsvxt\"><!-- HTML_TAG_START -->Goldman said it anticipates the hand-off will mean a one-time boost in its earnings per share of $0.46.<!-- HTML_TAG_END --><\/p>\n<p class=\"yf-vbsvxt\"><!-- HTML_TAG_START -->As part of this hand-off, the bank expects its net revenue to decline by $2.26 billion related to markdowns on the outstanding credit card loan portfolio and contract terminations, which is offset by the release of $2.48 billion of loan loss reserves.<!-- HTML_TAG_END --><\/p>\n<p class=\"yf-vbsvxt\"><!-- HTML_TAG_START -->Wells Fargo analyst Mike Mayo said in a Thursday note to clients that the one-time gain is &#8220;optically good for what has been value destroying effort, in our view.&#8221; Losses from Goldman&#8217;s consumer lending experiments since 2020 have amounted to $7 billion on a pre-tax basis, according to RBC analyst Gerard Cassidy.<!-- HTML_TAG_END --><\/p>\n<p class=\"yf-vbsvxt\"><!-- HTML_TAG_START -->Before the announcement, analysts expected Goldman to report fourth quarter earnings of $11.50 per share, according to data compiled by Bloomberg.<!-- HTML_TAG_END --><\/p>\n<figure data-testid=\"article-figure-image\" class=\"yf-1ems0tc\">\n<div class=\"image-container yf-lglytj loader\" style=\"--max-height: 640px;\">\n<div class=\"image-wrapper yf-lglytj\" style=\"--aspect-ratio: 960 \/ 640; --img-max-width: 960px;\"><img fetchpriority=\"high\" decoding=\"async\" src=\"data:image\/gif;base64,R0lGODlhAQABAIAAAAAAAP\/\/\/ywAAAAAAQABAAACAUwAOw==\" alt=\"Goldman Sachs CEO David Solomon reacts during the Goldman Sachs Investor Day at Goldman Sachs Headquarters in New York City, U.S., February 28, 2023. REUTERS\/Brendan McDermid\" loading=\"eager\" height=\"640\" width=\"960\" class=\"yf-lglytj loader\"\/><\/div>\n<\/div><figcaption class=\"yf-1ems0tc\"><!-- HTML_TAG_START -->Goldman Sachs CEO David Solomon reacts during the Goldman Sachs Investor Day at Goldman Sachs Headquarters in New York City, Feb. 28, 2023. REUTERS\/Brendan McDermid<!-- HTML_TAG_END -->  <span class=\"caption-separator yf-1ems0tc\" data-svelte-h=\"svelte-nxhdlu\">\u00b7<\/span> <span>REUTERS \/ Reuters<\/span><\/figcaption><\/figure>\n<p class=\"yf-vbsvxt\"><!-- HTML_TAG_START -->Goldman and Apple (<a data-i13n=\"cpos:4;pos:1\" href=\"https:\/\/finance.yahoo.com\/quote\/AAPL\" data-ylk=\"slk:AAPL;cpos:4;pos:1;elm:context_link;itc:0;sec:content-canvas\" class=\"link\">AAPL<\/a>) <a data-i13n=\"cpos:5;pos:1\" href=\"https:\/\/www.goldmansachs.com\/our-firm\/history\/moments\/2019-apple-card\" rel=\"nofollow noopener\" target=\"_blank\" data-ylk=\"slk:launched the credit card partnership in 2019;cpos:5;pos:1;elm:context_link;itc:0;sec:content-canvas\" class=\"link\">launched the credit card partnership in 2019<\/a> as part of Goldman&#8217;s broader push into the consumer business.<!-- HTML_TAG_END --><\/p>\n<p class=\"yf-vbsvxt\"><!-- HTML_TAG_START --><em>Read more: <\/em><a data-i13n=\"cpos:6;pos:1\" href=\"https:\/\/finance.yahoo.com\/personal-finance\/credit-cards\/review\/apple-card-review-220211909.html\" data-ylk=\"slk:Apple Card review: Ideal for Apple fans who want to save on tech purchases;cpos:6;pos:1;elm:context_link;itc:0;sec:content-canvas;outcm:mb_qualified_link;_E:mb_qualified_link;ct:story;\" class=\"link  yahoo-link\"><em>Apple Card review: Ideal for Apple fans who want to save on tech purchases<\/em><\/a><!-- HTML_TAG_END --><\/p>\n<p class=\"yf-vbsvxt\"><!-- HTML_TAG_START -->Discussions at the storied Wall Street bank to retrench from its consumer banking push began internally as far back as early 2022, according to CEO Solomon, who told analysts that the bank&#8217;s decision to retreat the following January was because &#8220;we tried to do too much too quickly.\u201d<!-- HTML_TAG_END --><\/p>\n<p class=\"yf-vbsvxt\"><!-- HTML_TAG_START -->The period, which came amid a multiyear drought in Goldman\u2019s core dealmaking business, added even more pressure to Solomon, who faced more scrutiny than ever before.<!-- HTML_TAG_END --><\/p>\n<p class=\"yf-vbsvxt\"><!-- HTML_TAG_START -->&#8220;We had a lot of regulatory pressure,&#8221; Solomon <a data-i13n=\"cpos:7;pos:1\" href=\"https:\/\/www.youtube.com\/watch?v=kcEQlp_QGJo\" rel=\"nofollow noopener\" target=\"_blank\" data-ylk=\"slk:said last month in an interview;cpos:7;pos:1;elm:context_link;itc:0;sec:content-canvas\" class=\"link\">said last month in an interview<\/a> when asked about the decision to exit the partnership.<!-- HTML_TAG_END --><\/p>\n<p class=\"yf-vbsvxt\"><!-- HTML_TAG_START -->&#8220;A group of us in the senior leadership said, &#8216;This is not working. We can make it work, but it\u2019s going to be very, very hard. But it\u2019s small, and it\u2019s distracting us from the things that can really create significant market cap and value.&#8217; And so we made the tough decision to park it,&#8221; Solomon added.<!-- HTML_TAG_END --><\/p>\n<\/p><\/div>\n<div style=\"display: none\" data-testid=\"read-more\">\n<p class=\"yf-vbsvxt\"><!-- HTML_TAG_START -->For JPMorgan, the deal brings an estimated $20 billion in credit card balances, further locking in its dominance as a credit lending giant and offering the nation&#8217;s largest bank a new customer base to cross-sell.<!-- HTML_TAG_END --><\/p>\n<p class=\"yf-vbsvxt\"><!-- HTML_TAG_START -->The deal brings JPMorgan&#8217;s total US credit card loan portfolio to $255 billion, putting it just $1 billion ahead of rival card lender Capital One (<a data-i13n=\"cpos:8;pos:1\" href=\"https:\/\/finance.yahoo.com\/quote\/COF\" data-ylk=\"slk:COF;cpos:8;pos:1;elm:context_link;itc:0;sec:content-canvas\" class=\"link\">COF<\/a>), according to the company&#8217;s third quarter earnings reports.<!-- HTML_TAG_END --><\/p>\n<p class=\"yf-vbsvxt\"><!-- HTML_TAG_START -->The Wall Street Journal <a data-i13n=\"cpos:9;pos:1\" href=\"https:\/\/www.wsj.com\/finance\/banking\/jpmorgan-chase-reaches-a-deal-to-take-over-the-apple-credit-card-4e214fb2\" rel=\"nofollow noopener\" target=\"_blank\" data-ylk=\"slk:first reported details of the agreement;cpos:9;pos:1;elm:context_link;itc:0;sec:content-canvas\" class=\"link\">first reported details of the agreement<\/a> and, citing sources, reported that Goldman is taking a more than $1 billion discount on the sale. The deal talk had dragged on for months due in part to the portfolio&#8217;s higher delinquency rates.<!-- HTML_TAG_END --><\/p>\n<figure data-testid=\"article-figure-image\" class=\"yf-1ems0tc\">\n<div class=\"image-container yf-lglytj loader\" style=\"--max-height: 640px;\">\n<div class=\"image-wrapper yf-lglytj\" style=\"--aspect-ratio: 960 \/ 640; --img-max-width: 960px;\"><img decoding=\"async\" src=\"data:image\/gif;base64,R0lGODlhAQABAIAAAAAAAP\/\/\/ywAAAAAAQABAAACAUwAOw==\" alt=\"FILE - In this March 25, 2019, file photo, Jennifer Bailey, vice president of Apple Pay, speaks about the Apple Card at the Steve Jobs Theater in Cupertino, Calif. (AP Photo\/Tony Avelar, File)\" loading=\"lazy\" height=\"640\" width=\"960\" class=\"yf-lglytj loader\"\/><\/div>\n<\/div><figcaption class=\"yf-1ems0tc\"><!-- HTML_TAG_START -->In this March 25, 2019, file photo, Jennifer Bailey, vice president of Apple Pay, speaks about the Apple Card at the Steve Jobs Theater in Cupertino, Calif. (AP Photo\/Tony Avelar, File)<!-- HTML_TAG_END -->  <span class=\"caption-separator yf-1ems0tc\" data-svelte-h=\"svelte-nxhdlu\">\u00b7<\/span> <span>ASSOCIATED PRESS<\/span><\/figcaption><\/figure>\n<p class=\"yf-vbsvxt\"><!-- HTML_TAG_START -->JPMorgan expects to set aside an additional $2.2 billion provision for future credit losses to account for the portfolio. Analysts projected ahead of the announcement that its fourth quarter credit provisions would amount to $3.1 billion.<!-- HTML_TAG_END --><\/p>\n<p class=\"yf-vbsvxt\"><!-- HTML_TAG_START -->\u201cApple is an iconic brand recognized globally for its innovation, design excellence, and commitment to delivering exceptional customer experiences,\u201d Allison Beer, JPMorgan\u2019s CEO of card and connected commerce, said in a press release statement.<!-- HTML_TAG_END --><\/p>\n<p class=\"yf-vbsvxt\"><!-- HTML_TAG_START -->\u201cWe share a commitment to supporting consumer financial health, and we\u2019re proud to deepen our relationship by welcoming them as the newest partner,&#8221; Beer added.<!-- HTML_TAG_END --><\/p>\n<p class=\"yf-vbsvxt\"><!-- HTML_TAG_START -->Goldman&#8217;s core Wall Street businesses of dealmaking and trading have soared over the last year. Its stock was down slightly early Thursday, but has climbed over 60% in the last 12 months, outperforming all rival Wall Street banks with the exception of Citigroup (<a data-i13n=\"cpos:10;pos:1\" href=\"https:\/\/finance.yahoo.com\/quote\/C\/\" data-ylk=\"slk:C;cpos:10;pos:1;elm:context_link;itc:0;sec:content-canvas\" class=\"link\">C<\/a>).<!-- HTML_TAG_END --><\/p>\n<p class=\"yf-vbsvxt\"><!-- HTML_TAG_START --><em>David Hollerith covers the financial sector<\/em>,<em> ranging from the country&#8217;s biggest banks to regional lenders, private equity firms, and the cryptocurrency space.<\/em><!-- HTML_TAG_END --><\/p>\n<p class=\"yf-vbsvxt\"><!-- HTML_TAG_START --><a data-i13n=\"cpos:11;pos:1\" href=\"https:\/\/finance.yahoo.com\/topic\/stock-market-news\/\" data-ylk=\"slk:Click here for in-depth analysis of the latest stock market news and events moving stock prices;cpos:11;pos:1;elm:context_link;itc:0;sec:content-canvas\" class=\"link\"><strong>Click here for in-depth analysis of the latest stock market news and events moving stock prices<\/strong><\/a><!-- HTML_TAG_END --><\/p>\n<p class=\"yf-vbsvxt\"><!-- HTML_TAG_START --><a data-i13n=\"cpos:12;pos:1\" href=\"https:\/\/finance.yahoo.com\/news\/\" data-ylk=\"slk:Read the latest financial and business news from Yahoo Finance;cpos:12;pos:1;elm:context_link;itc:0;sec:content-canvas\" class=\"link\"><strong>Read the latest financial and business news from Yahoo Finance<\/strong><\/a><!-- HTML_TAG_END --><\/p>\n<\/p><\/div>\n<p><a href=\"https:\/\/finance.yahoo.com\/news\/after-clinching-apple-card-sale-to-jpmorgan-goldman-sachs-nears-the-end-of-its-years-long-consumer-headache-143343363.html\">Source link <\/a><br \/>\nSee more https:\/\/theglobaltrack.com\/<\/p>","protected":false},"excerpt":{"rendered":"<p>Goldman Sachs (GS) has reached an agreement to move its Apple Card business to Chase (JPM) in a deal that brings the company one step closer to ending its years-long foray deeper into the consumer banking business that became a headache for the firm. \u201cThis transaction substantially completes the narrowing of our focus in our [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":78709,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"googlesitekit_rrm_CAow2JLhCw:productID":"","_gspb_post_css":"","maa_idioma":"","maa_pais":"","footnotes":""},"categories":[1],"tags":[3294,6213,12074,13020,13021],"class_list":["post-78708","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-ubirata","tag-apple","tag-card","tag-goldman","tag-headache","tag-sachs"],"blocksy_meta":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v27.6 (Yoast SEO v27.6) - 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