Goldman set to add GM credit cards to its growing consumer book
Goldman Sachs Group is close to signing a deal to take on General Motors' credit card business, according to a person with knowledge of the matter.
The deal would let Goldman add its brand to another Main Street business line as its nascent consumer business continues to expand, the person said, asking not to be identified discussing the agreement because it isn’t public.
While the transaction is relatively small in the credit card industry, it’s another sign of the Wall Street firm’s deeper foray into retail banking. That includes small-business loan deals with the likes of Walmart, financing vacation purchases with JetBlue Airways and a high-profile credit card tie-up with Apple.
The Wall Street Journal reported that Goldman beat out Barclays to take on $2.5 billion in GM loan balances from Capital One Financial, which has been offloading some of its smaller portfolios recently. Buyers of such credit card deals typically pay a fraction of the total outstanding loan balance. The person familiar with the matter didn’t say how much Goldman would pay.
Representatives for Goldman and GM had no immediate comment.