JPMorgan Chase (JPM.US) is reportedly set to take over Apple's (AAPL.US) credit card project from Goldman (GS.US).
1min read JP Morgan (JPM.US) is reportedly in talks with Apple (AAPL.US) to take over the iPhone maker's credit card project from Goldman (GS.US), according to reports.
Apple currently uses Goldman to issue its credit cards, but the bank decided to end its partnership with Apple on credit and savings accounts last year.
Apple has since been in talks with several potential acquirers of its credit card project, including card issuer Synchrony Financial (SYF.US) and Capital One (COF.US), according to people familiar with the matter.
The people said that the goal of the JPMorgan team negotiating the deal is to acquire the Apple credit card project for an unpaid balance of less than $17bn, and added that the deal could take several months.
The people also said that the US's largest bank is trying to cancel some key aspects of the credit card project, such as Apple's requirement that all cardholders receive a statement at the beginning of each month.
Meanwhile, the cost of Goldman's exit from the consumer space is high and losses are mounting. Last week, the investment bank revealed it was prepared to take a $400m pre-tax loss, mainly due to the sale of its General Motors (GM.US) credit card business. On September 10, it was reported that Goldman would sell a $2bn portfolio of loans related to GM customers to Barclays (BCS.US).
If Goldman sells the Apple credit card plan to a new issuer, it could suffer further losses.
