Apple and Goldman Sachs Must Pay Nearly $90 Million Over Apple Card Inquiry

Published On Oct 23, 2024, 12:01 PM

Federal regulators imposed fines exceeding $89 million on Goldman Sachs and Apple due to their mishandling of the Apple Card credit system. Goldman has been fined $45 million, Apple $25 million, and Goldman will also issue $19.8 million in refunds to impacted customers. The Consumer Financial Protection Bureau (CFPB) found that both companies failed to adequately resolve customer disputes and misrepresented interest-free financing options. This poor execution has led to a ban on Goldman offering new credit cards unless they can prove compliance with regulatory standards.

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Stock Forecasts

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Negative

The penalties and negative publicity resulting from the CFPB's findings may impact both Apple's and Goldman's reputations in the financial products arena. Goldman Sachs may face operational hurdles in complying with new regulations, while Apple may experience backlash in customer trust regarding its financial services. Both companies could see pressure on their stock prices in the short-term as investors react to these developments.

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Negative

Apple, continuing to face challenges in its financial collaboration, may see investor sentiment shift negatively as well due to regulatory scrutiny. However, Apple's robust core business can mitigate some of these impacts unless further issues arise in its financial operations.

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