This text initially appeared on Business Insider.
A brand new report from The Wall Street Journal sheds additional gentle on how Goldman insiders really feel in regards to the financial institution’s consumer-lending efforts with Apple.
One quote, particularly, 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 providers, together with an Apple credit card, the aforementioned Apple 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 providers — Apple introduced earlier this 12 months that customers had deposited greater than $10 billion into 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, presumably to American Categorical. However the firms have not spoken publicly of any adjustments. That very same month, Goldman CEO David Solomon instructed traders and analysts throughout the financial institution’s second-quarter earnings name that the financial institution was making progress on its bank card partnerships, which additionally embrace a bank card with General Motors, launched in 2020.
“We have additionally mentioned very clearly that our bank card partnerships are long-term partnerships…They undoubtedly can function higher,” Solomon mentioned on the decision. “We have been working onerous 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 consumer banking enterprise throughout 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, strain on Solomon has been rising.
Final quarter, Goldman reported its worst earnings in years. In keeping with Solomon, the gloomy numbers had been a part of the financial institution’s “journey” to chart a brand new path with its evolving technique.
Goldman reviews its third-quarter earnings Tuesday.