This text initially appeared on Enterprise Insider.
A brand new report from The Wall Road Journal sheds additional gentle on how Goldman insiders really feel in regards to the financial institution’s client lending efforts with Apple.
One quote particularly stands out.
“We should always by no means have performed this freaking factor,” an unnamed Goldman associate reportedly advised others on the financial institution, referring to Apple’s opening of financial institution financial savings accounts in April.
Collectively, Apple’s partnership with Goldman introduced a number of client companies, together with the Apple Credit score Card, the aforementioned Apple Financial savings Account, and a buy-now, pay-later service that permits customers to separate funds into bigger purchases.
However whereas Apple and Goldman have publicly touted the success of the varied companies — Apple introduced earlier this yr that customers had deposited greater than $10 billion into financial savings accounts — the Journal’s newest report suggests Goldman could also be on the lookout for an exit because it seeks to attenuate its client lending footprint.
Different Goldman insiders apparently agree with the unnamed associate’s sentiment that the partnership was a mistake, the Journal studies.
That is additionally not the primary turmoil within the partnership. The Journal reported in July that Goldman was contemplating shifting its Apple partnership, probably to American Specific. However the firms haven’t spoken publicly about any adjustments. That very same month, Goldman CEO David Solomon advised traders and analysts throughout the financial institution’s second-quarter earnings name that the financial institution is shifting ahead with bank card partnerships, which embrace a bank card with Common Motors, launched in 2020.
“We have additionally made it very clear that our bank card partnerships are long-term partnerships…They will positively do higher,” Solomon mentioned throughout the name. “We have been working exhausting to enhance their efficiency … we’re making progress on that. And we’re working with Apple and in addition with GM on that.”
Apple didn’t reply to Insider’s request for remark forward of publication. A Goldman spokesman declined to touch upon the Journal’s report.
However Goldman has confronted mounting losses in its client banking enterprise throughout the pandemic, Insider Dakin Campbell reported in August 2022. In October 2022, Solomon mentioned Goldman’s contract with Apple had been prolonged by way of 2029.
In the meantime, the stress on Solomon is mounting.
Final quarter, Goldman reported its worst earnings in years. In line with Solomon, the dismal figures have been a part of the financial institution’s “journey” to chart a brand new path with its growth technique.
Goldman reported its third-quarter earnings on Tuesday.