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Goldman Sachs was new to consumer banking and it has long been apparent that Apple outplayed them with the Apple Card deal, causing them to lose a lot of money,

Goldman Sachs was new to consumer banking and it has long been apparent that Apple outplayed them with the Apple Card deal, causing them to lose a lot of money, and so they have been wanting to get out of it: https://appleinsider.com/articles/23/10/16/goldman-sachs-regrets-apple-card-and-is-trying-to-escape-the-deal https://appleinsider.com/articles/23/10/16/goldman-sachs-reg...

jez 9mo ago
Does that mean that this new partnership will be better because Chase is better at consumer banking than Goldman Sachs, or Chase negotiated a deal that will not cause them to lose a lot of money? If it's the latter, does that mean that the card rewards for Apple Card will get worse?
- wmf 9mo ago
  I predict the perks will get worse. Chase already lost money on Sapphire Reserve so they're probably not eager to do that again.
- TingPing 9mo ago
  The Apple Card has no interesting perks compared to existing Chase offerings.
- pixelatedindex 9mo ago
  > If it's the latter, does that mean that the card rewards for Apple Card will get worse? Can it really get worse? All they do is a 2% cash back if you use Apple Pay, and 1% if you use the physical card. Ok if you buy directly from Apple it’s 3% back but that’s hardly “good” - you get a couple of bucks for buying an AirPod.
  - deleted 9mo ago
    [deleted]
- AdieuToLogic 9mo ago
  > Does that mean that this new partnership will be better because Chase is better at consumer banking than Goldman Sachs, or Chase negotiated a deal that will not cause them to lose a lot of money? The partnership between Apple and Chase is not new, even though this particular credit card product offering is. There is another quite popular form of payment Apple has supported for years which necessitated this partnership to be established.
- xyst 9mo ago
  > does that mean that the card rewards for Apple Card will get worse? the card rewards for AC were pretty awful in the first place. It's only useful as a store card that offers 0% financing. the deal is probably more in favor of chase when it comes to the fee schedule and various issuing bank and interchange fees (ie, the ~2-3% that card networks charge to merchants)
malshe 9mo ago
This is impressive because whenever I hear Goldman Sachs, this line by Matt Taibbi comes to mind: The world’s most powerful investment bank is a great vampire squid wrapped around the face of humanity, relentlessly jamming its blood funnel into anything that smells like money. (https://www.rollingstone.com/politics/politics-news/the-great-american-bubble-machine-195229/ https://www.rollingstone.com/politics/politics-news/the-grea...)
- derwiki 9mo ago
  HST’esque
- xmprt 9mo ago
  This only works until you find a bigger vampire squid (Apple).
- lotsofpulp 9mo ago
  That article is dated April 2010. iPhone 4 came out Jun 2010. Finance was already in the process of taking a back seat to tech.
fullshark 9mo ago
I don’t really get why it’s a bad deal for GS or how “Apple outplayed them” based on that article. Just seems like a frayed partnership cause they didn’t hit their numbers.
- MBCook 9mo ago
  The Apple Card has a lot of sub-prime borrowers because Apple pushed to approve almost everyone. Plus Apple had things structured for fewer fees to be charged than normal cards for late payments, foreign transactions, etc. That combination meant GS didn’t see the expected profit and in fact lost money (reportedly).

jez 9mo ago

Does that mean that this new partnership will be better because Chase is better at consumer banking than Goldman Sachs, or Chase negotiated a deal that will not cause them to lose a lot of money? If it's the latter, does that mean that the card rewards for Apple Card will get worse?

wmf 9mo ago
I predict the perks will get worse. Chase already lost money on Sapphire Reserve so they're probably not eager to do that again.
TingPing 9mo ago
The Apple Card has no interesting perks compared to existing Chase offerings.
pixelatedindex 9mo ago
> If it's the latter, does that mean that the card rewards for Apple Card will get worse? Can it really get worse? All they do is a 2% cash back if you use Apple Pay, and 1% if you use the physical card. Ok if you buy directly from Apple it’s 3% back but that’s hardly “good” - you get a couple of bucks for buying an AirPod.
- deleted 9mo ago
  [deleted]
AdieuToLogic 9mo ago
> Does that mean that this new partnership will be better because Chase is better at consumer banking than Goldman Sachs, or Chase negotiated a deal that will not cause them to lose a lot of money? The partnership between Apple and Chase is not new, even though this particular credit card product offering is. There is another quite popular form of payment Apple has supported for years which necessitated this partnership to be established.
xyst 9mo ago
> does that mean that the card rewards for Apple Card will get worse? the card rewards for AC were pretty awful in the first place. It's only useful as a store card that offers 0% financing. the deal is probably more in favor of chase when it comes to the fee schedule and various issuing bank and interchange fees (ie, the ~2-3% that card networks charge to merchants)

malshe 9mo ago

This is impressive because whenever I hear Goldman Sachs, this line by Matt Taibbi comes to mind: The world’s most powerful investment bank is a great vampire squid wrapped around the face of humanity, relentlessly jamming its blood funnel into anything that smells like money. (https://www.rollingstone.com/politics/politics-news/the-great-american-bubble-machine-195229/ https://www.rollingstone.com/politics/politics-news/the-grea...)

derwiki 9mo ago
HST’esque
xmprt 9mo ago
This only works until you find a bigger vampire squid (Apple).
lotsofpulp 9mo ago
That article is dated April 2010. iPhone 4 came out Jun 2010. Finance was already in the process of taking a back seat to tech.

fullshark 9mo ago

I don’t really get why it’s a bad deal for GS or how “Apple outplayed them” based on that article. Just seems like a frayed partnership cause they didn’t hit their numbers.

MBCook 9mo ago
The Apple Card has a lot of sub-prime borrowers because Apple pushed to approve almost everyone. Plus Apple had things structured for fewer fees to be charged than normal cards for late payments, foreign transactions, etc. That combination meant GS didn’t see the expected profit and in fact lost money (reportedly).