Goldman Sachs Plans to Offload GM Credit Card Program Amid Retreat from Consumer Lending

Goldman Sachs expects General Motors to lead the search for a new issuer for its credit-card program, as it steps further back from consumer lending after failing to meet cost reduction targets; affected employees have been promised one-year compensations if their jobs are cut.

• Goldman Sachs plans to begin offloading its GM credit card program as it retreats further from consumer lending, after determining it cannot sufficiently cut costs associated with the program.
• The bank has informed employees within its Platform Solutions division of the search for a new issuer, promising pay equal to one year of their compensation if their jobs are cut.
• General Motors is expected to spearhead the process of finding a new issuer for the credit card program, primarily targeted at people who purchase and own GM vehicles.
• No confirmation has been made whether American Express, with whom Goldman Sachs has held conversations, will participate in the sales process for the GM credit card program.
• This planned sale of the GM credit card program is one of the final steps in Goldman Sachs's scaling back of its consumer-lending division, after selling specialty lender GreenSky and most of the personal loan portfolio.

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