Overview

• Goldman Sachs plans to begin offloading its GM credit card program as it retreats further from consumer lending, after determining it cannot sufficiently cut costs associated with the program.
• The bank has informed employees within its Platform Solutions division of the search for a new issuer, promising pay equal to one year of their compensation if their jobs are cut.
• General Motors is expected to spearhead the process of finding a new issuer for the credit card program, primarily targeted at people who purchase and own GM vehicles.
• No confirmation has been made whether American Express, with whom Goldman Sachs has held conversations, will participate in the sales process for the GM credit card program.
• This planned sale of the GM credit card program is one of the final steps in Goldman Sachs's scaling back of its consumer-lending division, after selling specialty lender GreenSky and most of the personal loan portfolio.