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Goldman Sachs bids to offload GM credit card

Goldman Sachs bids to offload GM credit card

Goldman Sachs is preparing to sell off its General Motors credit card programme as part of its wider retreat from the retail market, according to the Wall Street Journal.

The Wall Street giant beat out competition from Barclays in 2020 to buy GM's credit card business in a multi-year deal worth around $2.5 billion.

However, the bank has now told staffers at its Platform Solutions division that GM is set to look for a new issuer, says the Journal, citing sources.

Goldman is understood to be trying to exit its other major credit card deal with Apple. The WSJ has previously reported that the bank wants to pass on the business to American Express, which could also be in the frame for the GM business.

In January Goldman reported that the Platform Solutions unit made a pre-tax loss of $1.2 billion in the first nine months of 2022.

This year, the bank has ditched two other parts of that unit, agreeing to sell BNPL-based home improvement lender GreenSky to a consortium of institutional investors and offloading its Personal Financial Management unit to Creative Planning.

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