Goldman’s push into consumer finance continues to be a disaster. While CEO David Solomon had grand plans, the entire move has proven to be an unmitigated disaster.
The foray cost the company about $6 billion from 2020 through the first quarter of this year. So, the great unwinding continues.
We learned yesterday that Barclays is the leading contender to take over the GM credit card business that Goldman acquired in 2020. Interestingly, its main competitor in that process was Barclays.
GM’s credit card business has about $2 billion in outstanding balances, down from $3 billion in 2020. The deal has not closed yet, and it could come undone as an agreement on price has not yet been reached.
Next on the chopping block will likely by the Apple Card which Goldman has also indicated it is interested in offloading.
It has been fascinating to watch the journey of Goldman’s consumer business since 2016. One day, it will provide a rich case study for business school students.
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> GM in Talks to Move Credit-Card Business From Goldman to Barclays
www.wsj.com
Deal including roughly $2 billion of card balances could be struck by summer.
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