Goldman Sachs to Sell GM Credit Card Portfolio to Barclays
Goldman Sachs is working on a deal to sell the $2 billion General Motors credit card business portfolio to Barclays.
Bloomberg, which first reported the news, says that Goldman Sachs is will likely “sell the portfolio of loans to Barclays Plc at a discount to the value of the outstanding balances, according to a person with knowledge of the matter.”
Goldman Sachs CEO David Solomon said earlier this week that the bank had made “significant progress on the transition of the GM card platform” and it expected to take a $400 million loss from this sale and other small retail ventures.
Barclays has not been willing to pay Goldman the price initially expected, largely because of high charge-off rates associated with the program.
Goldman Sachs was already planned to nix its co-branded credit cards with GM last November. The credit card program, issued by Mastercard through Goldman Sachs, was launched in 2022.
The sale of the GM credit card portfolio is part of Goldman Sachs’ move to move away from the credit card business and focus on consumer services.
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