Goldman Sachs to Take $400 Million Hit as It Exits GM Credit Card Business

The bank's retreat from consumer lending will impact third-quarter results, with a deal to transfer the GM card portfolio to Barclays nearing completion.

Goldman Sachs CEO David Solomon confirmed the bank will take a $400 million pretax charge from exiting the GM credit card partnership and other small retail ventures.
The GM credit card business, with approximately $2 billion in outstanding loans, is being sold to Barclays at a discounted value due to high charge-off rates.
Goldman Sachs' consumer-lending ventures, including credit cards, have resulted in over $6 billion in pretax losses since early 2020.
The bank has been shifting focus away from consumer finance since 2022, aiming to concentrate on investment banking and high-net-worth clients.
Goldman Sachs shares fell over 4% following the announcement, with additional pressure from a projected 10% decline in third-quarter trading revenue.