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Goldman Sachs Wants to End Apple Partnership, American Express Might Take Over
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Apple should switch to Capital One.
What's in your wallet?
What's in your wallet?
They did get me though. I bought my iMac with the apple card due to the 1 year interest free + free airpod pros
Last I saw about this GS seemed to be saying ‘sure it cost us millions but it was still a good idea’. Guess it wasn’t after all.
Why would the Federal Communications Commission stop Apple from buying a bank? The FCC regulates things having to do with communications, not finance.
Cingular?? Wow, you took me back! I remember those days..
I have had mine for over 20 years. Not always perfect CS but years ago was better now I am not sure.
jarman92 said......
"I don’t particularly care either way, but swapping out MasterCard for AmEx is not a 1:1 trade—the AmEx network sucks. Apple and/or Goldman and/or AmEx better be offering some serious perks to keep customers around if they switch."
MC and AMEX have their individual good, but switching from MC to AMEX is a reach. having have/had the past 40 years really need to think about which is best for you.
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Lost money (by way of mistakes) vs did not earn due to terrible customer practices.
Goldman Sachs does not want to continue its partnership with Apple, according to a new report from The Wall Street Journal. Apple has teamed up with Goldman Sachs for the Apple Card credit card in the United States, Apple Pay Later, and the Apple Savings account that Apple Card users can opt for.
The banking company wants to cut back on its consumer business, and is now in talks with American Express (or Amex) about a potential takeover. A deal would see Goldman Sachs offloading its credit card partnerships to another company, which would include the Apple Card and other credit cards like one it offers for General Motors.
American Express has not yet established an agreement with Goldman Sachs, and a deal is not "imminent or assured," according to people who spoke to The Wall Street Journal.
Goldman Sachs recently extended its partnership with Apple through the end of the decade. Apple would have to agree to a transfer, and is aware of the talks that Goldman Sachs has been having with Amex.
Article Link: Goldman Sachs Wants to End Apple Partnership, American Express Might Take Over
Apple will buy a bank soon…and should have bought SVB et al.
What reason would the Federal Communications Commission to block a business deal that doesn’t involve communications or anything in the commissions purview?
from Mastercard and Goldman Sachs to just AmEx? I don’t even know if I see it happening honestly.
whatever does happen will be very interesting though!
maybe JPMorgan / Morgan Stanley will step in?
whatever does happen will be very interesting though!
maybe JPMorgan / Morgan Stanley will step in?
I don't know, I'm not even American. I just know acronyms like to block things.
Just as an aside, that’s illegal in the U.K. I think.
Hardly a flex when everyone and their dog can get an Apple Card lol. It’s the first credit card I’ve seen that has the “your credit sucks but if you are good for a couple months you can have one” programYou can get a Titanium Card from American Express. (Platinum Card)
It's another level of flex, durable, and ultra-premium.
View attachment 2226097
American Express Cards
American Express offers world-class Charge and Credit Cards, Gift Cards, Rewards, Travel, Personal Savings, Business Services, Insurance and more.www.googleadservices.com
Just let the SCOTUS decide. Seems like they decide all small cases nowadays.
I just checked and their is nothing in their merchants agreement and their "Merchant Reference Guide" that forbids extra fees. They explicitly even write that discounts for paying cash are allowed.
It seems there are laws in some US states that stop companies from disallowing fees. However in Singapore for example they forbid fees:
I know it is illegal in the EU to charge extra for Visa and Mastercard, but that law does not apple to AMEX, as the AMEX fees are excessive. They charge up to 3.5%.
If people do not have to pay extra fees for AMEX, that basically means that those fees indirectly have to be paid by all customers and that is unfair. I do not want to pay money just to give other people some flyer miles that they receive from AMEX.
A few Wall Street Journal articles to look at about this.
From the WSJ Article that the Cult of Mac linked to:
Goldman Is Looking for a Way Out of Its Partnership With Apple
By AnnaMaria Andriotis
June 30, 2023 at 4:07 pm ET
WSJ News Exclusive | Goldman Is Looking for a Way Out of Its Partnership With Apple
American Express is in talks to take over Goldman’s card deal and other ventures with the tech giant.www.wsj.com
...
A retreat from Apple and credit cards would effectively end Goldman’s consumer-lending business. The bank has already stopped issuing personal loans, and it is trying to sell GreenSky, the home-improvement lender it bought just last year.
Exiting the Apple partnership would also seal the fate of Goldman’s grand plans to become a full-service bank. Goldman, a firm best known for dominating the Wall Street businesses of investment banking and trading, first made a play for Main Street with its Marcus high-yield savings account in 2016. Three years later, it expanded into credit cards with its splashy Apple partnership. Goldman reached a deal for GreenSky in late 2021 and closed on the purchase early last year.
Goldman quickly became a presence in the bidding wars for co-branded credit-card deals, long the territory of megabanks like JPMorgan Chase and Citigroupthat have giant consumer arms.
That changed when Goldman decided to scale back its consumer ambitions late last year following an internal review. Goldman ended talks with T-Mobile to launch a credit card and stepped away from bidding on new programs, The Wall Street Journal reported in February. A few months later, Goldman said it would look for a buyer for GreenSky. ...
These articles were linked in the original WSJ article that Cult of Mac referenced.
In regards to the $3B loss see these two articles (excerpts quoted below, purple highlights were added)
WSJ News Exclusive | Goldman Sachs Steps Back From Bidding for New Credit Card Programs
The bank recently pulled out of advanced discussions to launch a T-Mobile US credit card and stopped courting Hawaiian Airlines.
www.wsj.com
https://www.wsj.com/articles/goldman-sachs-lost-3-billion-on-consumer-lending-push-11673616202
The Apple Buy Now Pay Later is financed by Apple not Goldman. But they have a strange contract it seems...
Goldman Sachs Chases Its Main Street Banking Ambitions—Slowly
By Charley Grant and AnnaMaria Andriotis
Updated July 26, 2022 at 4:41 pm ET
Goldman Sachs Chases Its Main Street Banking Ambitions—Slowly
Goldman is taking deposits from ordinary savers, but it still has a way to go before it can call itself a full-service consumer bank.
Goldman expects to have $30 billion in card and consumer loan balances and $150 billion in consumer deposits by 2024, up from $16 billion and more than $100 billion, respectively, at the end of June.
...
Other challenges loom: Goldman’s contract with Apple allows the tech giant to add another issuer before the deal expires, according to a person familiar with the matter. Larger card issuers typically wouldn’t agree to such an arrangement, according to people who negotiate co-branded card deals.
Apple recently announced a new buy-now pay-later offering. Goldman is involved in some of the product’s back-end functions, but Apple will approve borrowers and fund the loans itself.
The high interest rate plague of 2023 is actually screwing most banks. At high interest rates, debtors OF ALL KINDS will have a far difficult time paying back their debts. Many will end up defaulting. Millions will never pay back their debts and loans in full. That includes loans of all kinds (car, homes, credit card, even student loans, etc). The banks will do their best to collect, but they know they will lose billions in the end.
That's why banks are cutting back on these activities, in order to reduce risk exposure.
Once a US recession becomes an actualized, realized thing (maybe later this year).... that translates to additional MILLIONS of Americans that will lose their jobs, laid off workers, NO INCOME.... and will be unable to pay off their monthly bills. They won't even be able to pay off their (average) 8 streaming services, all charged to their credit cards.
And then the banks are really ******.
Some see this as GS being greedy. Maybe. But it's more likely that GS is simply trying to cut their losses, because they know things are going to spiral down the toilet even more (in a high interest rate economy).
That's why banks are cutting back on these activities, in order to reduce risk exposure.
Once a US recession becomes an actualized, realized thing (maybe later this year).... that translates to additional MILLIONS of Americans that will lose their jobs, laid off workers, NO INCOME.... and will be unable to pay off their monthly bills. They won't even be able to pay off their (average) 8 streaming services, all charged to their credit cards.
And then the banks are really ******.
Some see this as GS being greedy. Maybe. But it's more likely that GS is simply trying to cut their losses, because they know things are going to spiral down the toilet even more (in a high interest rate economy).
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