JPMorgan eyes Apple’s credit card takeover from Goldman: WSJ
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The news: JPMorgan is in discussions with Apple to take over its credit card program from Goldman Sachs, The Wall Street Journal reported citing unnamed sources.
Talks started earlier this year and have progressed, but key details, including pricing, are still being negotiated, the sources told the paper.
The context: Goldman, which has struggled in consumer banking, is looking to exit after incurring losses and facing regulatory scrutiny.
Apple is seeking a new issuer for the card, which has over 12 million users.
The numbers: JPMorgan is negotiating to pay less than the full value of approximately USD17 billion in outstanding balances, the paper said.
The pair are also discussing changes to the card’s billing structure, with Apple’s requirement for statements at the beginning of the month a point of contention during Goldman’s tenure.
The source: The Wall Street Journal
