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JPMorgan Chase to Take Over Apple Card From Goldman Sachs, WSJ Reports

Goldman will sell about $20 billion of balances at a discount of more than $1 billion, signaling credit strains in the portfolio.

Overview

  • JPMorgan will become the new issuer for both new and existing Apple Card customers, with a transition from Goldman expected to take time, the Wall Street Journal reported.
  • JPMorgan is planning an Apple-branded savings account, and existing Apple savings customers at Goldman will be able to choose whether to stay or open a new account with JPMorgan.
  • A public announcement is expected soon after negotiations that lasted more than a year, according to multiple outlets.
  • The discounted sale is unusual for co-branded card deals that typically trade at a premium and follows Goldman's losses and higher-than-average delinquency rates in the portfolio.
  • JPMorgan and Goldman declined to comment, and Apple did not immediately respond to a request for comment, Reuters reported.