As Goldman Sachs reportedly seeks to exit is credit card deal with Apple, it has emerged that the bank's underwriting system initially rejected Tim Cook's card application.
Goldman has been Apple's partner on the credit card since its launch in 2019 and has since become a banking partner for the tech giant's high-yield savings account feature and BNPL service.
However, Goldman has been retreating from the consumer market, hiving off digital bank Marcus and putting the Apple business into a new Platform Solutions unit alongside the firm's transaction banking operations and BNPL outfit Greensky.
That unit made a pre-tax loss of $1.2 billion in the first nine months of 2022, a $1.05 billion loss for 2021, and $783 million for 2020.
In June, the Wall Street Journal reported that Goldman wants to cut its ties with Apple and pass on the business to American Express.
However, The Information reports that a deal between Apple and AmEx or another potential partner, JPMorgan Chase, may prove difficult because neither firm is interested in co-branded cards or "playing second fiddle" on branding.
Instead, Apple may continue its move into FS to bring much of Goldman's contribution - underwriting, fraud prevention and customer service - in-house while using a less well-know lender for regulatory reasons.
Any switch from Goldman could take up to 18 months to complete, says The Information.
The Information also reports that CEO Tim Cook couldn't get approved for an Apple Card ahead of the launch after Goldman's underwriting system rejected him - not because of his credit but because he was a high profile target for fraud.
Eventually, the bank found a way to make a one-off exception to get Cook a card, says The Information, citing sources.