"In January, Goldman disclosed that it had lost about $3 billion on the consumer-lending push since 2020."<p>Looks like Tim Cook will be joining Warren Buffett in the 'squeezing Goldman Sachs' hall of fame: <a href="https://markets.businessinsider.com/news/stocks/warren-buffett-berkshire-hathaway-goldman-sachs-sale-billions-return-bailout-2020-5-1029212109" rel="nofollow noreferrer">https://markets.businessinsider.com/news/stocks/warren-buffe...</a>
Ha ha good luck, suckers. Negotiating with Apple is a fool's effort: they have too much experience and are too good at it.<p>Amex are no dummies either (despite a couple of near death experiences over the years). They'd be a good match with Apple from a consumer perspective but I find it hard to imagine that Apple would give up the terms of the sweet deal they struck with Goldman nor can I believe Amex would be willing to accept those terms.<p>Goldman isn't going to go out of business due to their botched consumer foray, but I'm sure Apple would be quite content to continue to peacefully pump blood out of Goldman until the original agreement runs out.<p>And Goldman: next time don't recruit a DJ to be your part time CEO!
I use an Apple Card and it’s good but nothing amazing. The incentives and benefits are pretty basic. The interest rate isn’t competitive, not even a 0% teaser rate. But I use it because it’s super fucking convenient. 1 account for my entire family. It helps catch billing mistakes for example we were paying for 2 Prime subscriptions for years; a monthly and annual.<p>My impression is Apple is trying to be the universal app. Chat, App Store, media, and bank. And GS is there stepping stone.
Q: The article doesn't say much on this point, but are there any hints about why Goldman was losing so much money on consumer lending at a time when other lenders seem to be doing comparatively better?
Does apple's foray into being a financial institution that can lend not already undercut the Goldman venture by being a lender(Apple Financial LLC ) and owning the PoS for the transaction via the iPhone? In other words why did goldman not sue apple(or think it should have put that in the contract)?<p>1. I thought their Apple Financial LLC is now a lender that gets to keep all the interchange fees from transactions on its own Digital wallet. This means users don't have to keep a 3rd party CC and Apple can lend to the Merchant.<p>2. Apple will then need to collect money from the users at the other end, which I thought was gonna be via their High Yield saving account: <a href="https://www.apple.com/newsroom/2023/04/apple-cards-new-high-yield-savings-account-is-now-available-offering-a-4-point-15-percent-apy/" rel="nofollow noreferrer">https://www.apple.com/newsroom/2023/04/apple-cards-new-high-...</a><p>This should complete the loop...
A question: Credit cards are generally profitable for banks, interest rates set accordingly to account for high default risk for these types of unsecured loans.<p>So what is it about these particular cards (really the audience using them) that makes them disproportionately more risky/prone to default?