SummaryGPT

• End of Partnership: Apple plans to terminate its credit-card partnership with Goldman Sachs, originally extended through 2029.

• Partnership Scope: This termination includes their credit card launched in 2019 and a recently introduced savings account.

• Goldman’s Financial Losses: Goldman Sachs experienced significant losses in its consumer lending expansion, prompting a retreat from the partnership.

• Potential Successors: American Express and Synchrony Financial are potential candidates for taking over the credit-card program, though challenges like loss rates are present.

• Impact on Apple: The end of this partnership is a minor setback for Apple’s services business, which has become more important as iPhone sales decelerate.

• Strategic Shift for Goldman: For Goldman Sachs, this marks a move away from consumer-focused services back to its core business with corporate and affluent clients.

• Initial Partnership Challenges: The partnership faced issues from the start, including disagreements over marketing, approval rates, billing practices, and regulatory scrutiny.

• Goldman’s Employee Retention Efforts: Goldman Sachs is taking steps to retain credit-card employees until the partnership’s transition is complete.

Even Bard thinks it’s borderline collusion.