Goldman is looking for a way out of its partnership with Apple

&quot;In January, Goldman disclosed that it had lost about $3 billion on the consumer-lending push since 2020.&quot;<p>Looks like Tim Cook will be joining Warren Buffett in the &#x27;squeezing Goldman Sachs&#x27; hall of fame: <a href="https:&#x2F;&#x2F;markets.businessinsider.com&#x2F;news&#x2F;stocks&#x2F;warren-buffett-berkshire-hathaway-goldman-sachs-sale-billions-return-bailout-2020-5-1029212109" rel="nofollow noreferrer">https:&#x2F;&#x2F;markets.businessinsider.com&#x2F;news&#x2F;stocks&#x2F;warren-buffe...</a>

Ha ha good luck, suckers. Negotiating with Apple is a fool&#x27;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&#x27;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&#x27;t going to go out of business due to their botched consumer foray, but I&#x27;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&#x27;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.

<a href="https:&#x2F;&#x2F;archive.ph&#x2F;sp4sl" rel="nofollow noreferrer">https:&#x2F;&#x2F;archive.ph&#x2F;sp4sl</a>

It&#x27;s bizarre how Goldman screwed up their push to consumer products so bad. How do you manage to lose <i>3 billion dollars</i> in 3 years?

Q: The article doesn&#x27;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&#x27;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&#x27;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:&#x2F;&#x2F;www.apple.com&#x2F;newsroom&#x2F;2023&#x2F;04&#x2F;apple-cards-new-high-yield-savings-account-is-now-available-offering-a-4-point-15-percent-apy&#x2F;" rel="nofollow noreferrer">https:&#x2F;&#x2F;www.apple.com&#x2F;newsroom&#x2F;2023&#x2F;04&#x2F;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&#x2F;prone to default?

Partnership with American Express could lead to Apple Card being available in more countries.

I wonder how the savings kickback feature would work under Amex--I don&#x27;t think they have any partnerships like that

No wall: <a href="https:&#x2F;&#x2F;archive.fo&#x2F;sp4sl" rel="nofollow noreferrer">https:&#x2F;&#x2F;archive.fo&#x2F;sp4sl</a>

Was I the only person to get the Apple card and then cancel it because I wanted to have the titanium card?

Damn Goldman actually getting squeezed. That is quite some delightful irony you don&#x27;t see everyday!

Apple could do the financing part themselves and partner with a card network for comms infrastructure.