This text initially appeared on Enterprise Insider.
A brand new report from The Wall Avenue Journal sheds additional gentle on how Goldman insiders really feel in regards to the financial institution’s consumer-lending efforts with Apple.
One quote, specifically, stands out.
“We must always have by no means carried out this f—ing factor,” an unnamed Goldman associate, talking in regards to the financial institution’s April financial savings accounts launch with Apple, reportedly instructed others on the financial institution.
Collectively, Apple’s partnership with Goldman has yielded a number of client companies, together with an Apple bank card, the aforementioned Apple financial savings account, and a buy-now,pay-later service that lets clients unfold out funds on bigger purchases.
However whereas Apple and Goldman have publicly touted the success of the assorted companies — Apple introduced earlier this yr that customers had deposited greater than $10 billion into financial savings accounts — the Journal’s newest report suggests Goldman could also be on the lookout for the exit because it seeks to reduce its consumer-lending footprint.
Different Goldman insiders apparently agree with the unnamed associate’s feeling that the partnership was a mistake, the Journal reported.
This additionally is not the primary rumbling of unrest within the partnership. The Journal reported in July that Goldman was contemplating offloading its Apple partnership, probably to American Specific. However the corporations have not spoken publicly of any adjustments. That very same month, Goldman CEO David Solomon instructed buyers and analysts through the financial institution’s second-quarter earnings name that the financial institution was making progress on its bank card partnerships, which additionally embody a bank card with Normal Motors, launched in 2020.
“We have additionally mentioned very clearly that our bank card partnerships are long-term partnerships…They positively can function higher,” Solomon mentioned on the decision. “We have been working exhausting to enhance the operation of them … we’re making good progress on that. And we’re working with Apple and likewise with GM to do this.”
Apple didn’t reply to Insider’s request for remark forward of publication. A Goldman spokesperson declined to touch upon the Journal’s report.
However Goldman confronted mounting losses in its client banking enterprise through the pandemic, Insider’s Dakin Campbell reported in August 2022. In October 2022, Solomon mentioned that Goldman’s take care of Apple had been prolonged till 2029.
In the meantime, stress on Solomon has been rising.
Final quarter, Goldman reported its worst earnings in years. In keeping with Solomon, the gloomy numbers have been a part of the financial institution’s “journey” to chart a brand new path with its evolving technique.
Goldman experiences its third-quarter earnings Tuesday.
