Details
Written by: RJ
Goldman Sachs is selling the GM credit card program to Barclays.
Goldman Sachs is likely to get less than the outstanding balances after having paid a premium to acquire them. The card partnership has about $2 billion in balances, the report said.
A spokesperson for Goldman declined to comment when reached by PYMNTS.
The “problematic” accounts were chiefly originated by Goldman after it took over the program from Capital One and began launching accounts in 2022, according to the report. Average charge-offs on the Goldman-originated accounts, which account for about a third of the GM portfolio, exceed 10%.
The annualized credit card charge-off rate of American commercial banks is 4.5%, the report said, citing Federal Reserve data.
Reported by PYMTS
Thoughts
No surprise. The GM cards has a chance to be good but the limits on redemptions made it a hard sell.
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