Goldman Sachs ’ third - quarter earnings may be the final straw for theApple Cardas the Wall Street heavyweight confront internal insistence to decease the consumer - lending space . The Apple partnership has long been consider as a distraction from Goldman ’s core business sector , the Wall Street JournalreportedMonday . In respect to the recently launchedApple savings accounts , a Goldman partner tell workfellow , “ We should have never done this f — ing affair . ” ( censorship the Journal ’s )
Goldman is under stiff pressure to slew losses as analyst require the depository financial institution ’s net income to be significantly down for the quarter . Apple ’s products with the bank may be on the chopping city block if earnings are as spoiled as expected . Senior administrator need out of the consumer lending space , sources told the Wall Street Journal , and Apple ’s fiscal product could beoffloadedonto another money box – possibly American Express .
Goldman ’s stock is down 11 % in 2023 , but the entire banking industry has beenin the dumpsthis year . An index for America ’s big depository financial institution devolve 24 % in 2023 due to regional banking company collapses , higher pursuit rates , and increase regulation , while the S&P 500 has risen 14 % .
Tim Cook unveiling the Apple Card partnership with Goldman Sachs.Photo: Michael Short (Getty Images)
In October 2019 , Goldman Sachs CEO David SolomoncalledtheApple Card ’s rollout“the most successful credit card launch ever . ” Apple ’s Tim Cooksaidaround the same time that the card would be “ the most significant modification in the credit card experience in 50 years . ”
The tone has certainly shifted , and many Goldman executives are call into question whether the maraud into consumer banking should have ever happen . The partnership between the two powerhouses of Silicon Valley and Wall Street , once lauded as modern , is now one of the most scrutinized decisions in Solomon ’s vocation .
The one thing keeping Apple around at the infamous Wall Street institution is thehigh - yield Apple rescue accountslaunched a few month ago . These account were , and stay on , wildly popular , draw billion of depositary that Goldman ca n’t give to part with . If Goldman were to step back from the Apple deal , the bank could be forced to evoke expensive upper-case letter in a short period of time .
David Solomon at a tech conference hosted by Kara Swisher.Photo: Jason Koerner (Getty Images)
Solomon ’s partnership with Apple accompany courtship with the rest of his term of office . The tatty CEO facedintense scrutinyamong Goldman partners for his focussing on consumer loaning and lack of focal point on traditional staples of the banking business . Partners in camera called for the ousting of Solomon altogether . Goldman Sachs recently sold Green Sky , another consumer lending weapons platform tout by Solomon , at asteep discountto what it purchased the fintech company for last year .
AppleGoldman SachsTim CookWall Street
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