📈 Will you get serious about investing in 2025? Take the first step with 50% off InvestingProClaim Offer

GM in talks with Barclays to replace Goldman Sachs in credit card partnership -source

Published 2024-04-30, 03:31 p/m
© Reuters. File photo: People walk in the Goldman Sachs global headquarters in Manhattan, New York, U.S., November 15, 2021. REUTERS/Andrew Kelly/File photo
GS
-
BARC
-
AAPL
-
MA
-

NEW YORK (Reuters) -General Motors is in talks with Barclays (LON:BARC) for a credit card partnership deal that will replace existing partner Goldman Sachs (NYSE:GS), a source familiar with the matter told Reuters.

Goldman Sachs has been looking for "strategic alternatives" for its consumer unit since last year after its CEO David Solomon decided to scale back the firm's retail ambitions in late 2022.

The Wall Street Journal earlier reported that Barclays is the leading candidate to take over issuance of the credit cards, which have about $2 billion of outstanding balances.

Including the Apple (NASDAQ:AAPL) Cards partnership, Goldman Sachs had credit card loan balances of $19 billion at the end of the first quarter, its earnings presentation showed. It did not separately break out GM's card loan balances in the presentation

Goldman Sachs, Barclays and GM declined to comment.

© Reuters. File photo: People walk in the Goldman Sachs global headquarters in Manhattan, New York, U.S., November 15, 2021. REUTERS/Andrew Kelly/File photo

Goldman Sachs had planned to scrap its co-branded credit cards with GM last November. The credit card program, issued by Mastercard (NYSE:MA) through Goldman Sachs, was launched in 2022 to let customers earn more points to put towards buying or leasing Buicks, Cadillacs and other GM cars.

Goldman Sachs and Apple are also weighing a potential end to their card partnership, but the Wall Street bank will face pressure from bidders to reduce the value of its stake in order to make the price more attractive, Reuters reported earlier, citing two sources familiar with the matter.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.