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Goldman Sachs to acquire GM's credit card unit for USD 2.5 bln, WSJ

Friday 2 October 2020 12:19 CET | News

Goldman Sachs has announced the buying of General Motors’s credit card business for about USD 2.5 billion (GBP 1.94 billion), according to the Wall Street Journal cited by Reuters.

Reportedly, the Wall Street bank won the bidding for the deal over Barclays. GM’s credit card issuer Capital One Financial and Goldman have agreed upon the purchase price and expect to finalise the deal sometime in the near future. The acquisition will enhance Goldman’s focus on its consumer banking business, which it is expanding to even out volatile results from segments such as trading and investment banking.

Goldman currently has a much smaller presence in consumer banking, unlike larger peers JP Morgan and Citigroup. It is the bank’s second credit card partnership, following the launch of a card with Apple in 2019. The purchase would also come at a time when US households are cutting back on debt in response to the COVID-19 pandemic.

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Keywords: Goldman Sachs, GM, General Motors, credit card, WSJ, Wall Street Journal, banks, credit card business, Wall Street, bank, Barclays, credit card issuer, Capital One Financial, investment banking, trading, consumer banking, JP Morgan, Citigroup, Apple, US, covid-19, pandemic
Categories: Banking & Fintech | Payments General
Countries: United States
This article is part of category

Banking & Fintech