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At a Goldman Sachs meeting in April About their consumer products namely the Apple card and the Apple savings account One executive stood up and said we Should have never done this thing hey Everyone welcome to the show and we have A bit of an update on the ongoing drama Surrounding the Apple card and Goldman Sachs who've been trying to get out of Their contract according to the Wall Street Journal who seem to have a source Inside Goldman Sachs now Goldman Reported earnings on Tuesday posting a 30 3% decline in profit for the third Quarter of 2023 and some of that decline Is due to their consumer lending Division employes in this division are Reportedly unhappy because of how Technology has been implemented losses Piling up and how difficult apple is to Work with many of them have been leaving And Goldman itself is trying to scale Back its consumer division which Includes the Apple card and its personal Loans which are already on pores they Also sold the company green green sky That they bought just last year for a Steep loss the purchase price was $1.7 Billion and they've apparently offloaded The homelander for just 500 million on The credit card Front Goldman also Canceled talks with T-Mobile Hawaiian Airlines and Expedia on issuing their Co-branded credit cards but let's talk
About the Apple card now we reported Before that Goldman was trying to Offload that product and it even held Talks with American Express for AMX to Take over the card but the these talks Have not been fruitful well the Wall Street Journal has some more Insider Info on the whole Apple card fiasco for Us so apple is apparently very difficult To work with and they have a lot of Requirements for the Apple card not only Do they want it to have no fees Whatsoever with no fees how do you make Money they'd have to rely on Merchant Fees and interest alone but then there Are also things like the date of the Credit card bills that get sent out most Banks use a rolling system where card Holders have different different Statement closing dates depending on When they signed up and the bills get Sent out throughout the month spread out Pretty much evenly but Apple apparently Insists on lining up with the Gregorian Calendar and every card holder gets Their statement on the exact same date At the beginning of the month I mean They could at least provide some Different options like the Chinese Luna Calendar for example The Wall Street Journal says that this causes a major Headache for Goldman Sachs customer Service people at the beginning of every Month and they struggle to keep up with
The work they have apparently lobbied Apple to change this but they've been Unsuccessful they've now hired Bill Johnson from City Group to oversee their Credit card Partnerships and make them Profitable according to people familiar With the matter he has until the end of The year to figure out how to lower Expenses and increase income if he can't Do this or if he says that it's doable Only if Goldman scales up with more Credit card programs to provide Economies of scale and more profit that Way then the bank likely intends to sell Its two remaining lending products the Apple card and the General Motors credit Card that process would in Theory start In early 2024 just 3 months away another Idea that was apparently floated around According to the journal was for Apple To become the lender for new Apple card Accounts but this is unlikely another Issue is that a lot of money has also Flowed into the new Apple savings Accounts that were launched this this Year and this has deepened the ties Between Goldman Sachs and Apple so who Knows what will happen it's kind of a Sticky situation and it's proving a Little bit difficult for Goldman Sachs To peel itself away from but it's not Like your Apple card is going to Suddenly get cancelled they still have a Contract with Apple basically in 3
Months at the end of the year or in January 2024 Goldman will make the Decision to either sell the Apple card Contract to another bank or keep issuing It themselves the problem for them is is That apple is so hard to work with that They might not find anyone else to take It over all right guys that is the video For today if you like this video do Share it with your friends it would Really help out our Channel and if you Want 12 free stocks from our sponsor Weeble for depositing any amount of Money in a new brokerage account do Click the link below it's a real No-brainer deal basically free money all Right please subscribe to the channel if You're new and we'll see you next time Bye-bye
