Apple is in talks with JPMorgan for bank to take over card from Goldman Sachs

Published On Sep 17, 2024, 3:03 PM

Apple is reportedly in early talks with JPMorgan Chase to transfer its credit card operations from Goldman Sachs due to ongoing losses and regulatory scrutiny affecting the current partnership. The discussions are preliminary, focusing on the financial terms and potential changes to the existing Apple Card features. JPMorgan, which has the largest credit card market share in the U.S., is interested in acquiring approximately $17 billion worth of loans from the Apple Card but aims to pay a reduced price because of the existing high delinquency rates associated with the card's users. The outcome of these talks remains uncertain as key aspects of the deal are still being negotiated.

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Stock Forecasts

JPMView JPM chart on TradingView

Positive

If JPMorgan successfully acquires the Apple Card operations, it could strengthen their position in the fintech space, potentially leading to increased customer subscriptions and loan growth. Conversely, if the negotiations falter, it could further reflect poorly on Apple's financial partnerships and their card program success.

GSView GS chart on TradingView

Negative

Goldman Sachs may face continued challenges with investor confidence if this deal falls through, as it indicates vulnerabilities in their strategy and operational management. This could lead investors to be cautious about holding or investing in Goldman Sachs stock.

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