Apple launched a high-yield savings account in partnership with Goldman Sachs, but its buzzed-about 4.15% APY isn’t lauded by one executive on the investment bank who didn’t hold back when dissing the endeavor.
“We should always have never done this f–king thing,” an unnamed Goldman partner told colleagues, per The Wall Street Journal.
It’s unclear who exactly made the comment, though it was reportedly said just after the savings account’s big debut at Goldman’s headquarters in April, when most executives hyped the account for Apple users’ ability to earn 10 times the national average rate of interest for savings accounts.
Goldman also agreed to operate Apple bank cards — which provide users as much as 3% money back on their purchases via Day by day Money — and support the tech firm’s “buy now, play later” offering.
And though the iPhone maker’s foray into industrial banking began off as a smash success — pulling in $1 billion in deposits inside days of its launch — Apple’s savings account feature has since fallen from grace.
Many Goldman executives agree, in response to The Journal, with bankers believing the corporate’s foray into consumer lending has been a distraction from its core Wall Street business.
![Days after Goldman Sachs launched a high-yield savings accounts and credit card in partnership with Apple, an unnamed bank partner told colleague:](https://nypost.com/wp-content/uploads/sites/2/2023/10/NYPICHPDPICT000021215719.jpg?w=1024)
The Journal reported in June that Goldman was having talks with American Express to take over its credit-card take care of Apple, though it’s unclear how advanced those conversations were.
Contained in the bank, partners blame Goldman’s ill-fated enterprise on CEO David Solomon, who has been facing heat for months over his sharp-elbowed management style, flopped business moves, and side hustle as a DJ.
When the investment bank reports its earnings on Tuesday, all eyes will little question be on its consumer-lending business, which has come to also include a bank card in partnership with General Motors and the acquisition of fintech lender GreenSky last 12 months fore $1.7 billion.
Goldman reportedly plans to sell GreenSky at a steep loss after only one 12 months of owning the platform. Goldman will offload the asset to investment firm Sixth Street for some $500 million, in response to The Journal.
The sale is predicted to lead to a 19-cents-per-share hit to Goldman’s third-quarter results, equal to about $60 million, per the outlet.
As a substitute of pawning off its Apple partnership, Goldman staffers on the Apple account have floated letting Apple take more ownership of the collaboration, in response to The Journal.
One proposed idea, per the outlet, would make Apple the lender for brand new credit-card spending and issuance while Goldman continues to administer existing loans.
![Insiders are reportedly blaming Goldman CEO David Solomon on the lack of profitability from the investment bank's ill-fated credit-card ventures.](https://nypost.com/wp-content/uploads/sites/2/2023/10/NYPICHPDPICT000031581177.jpg?w=1024)
Nonetheless, Goldman’s senior executives told The Journal that these ideas are only that — ideas — they usually haven’t made their way up either company’s corporate ladder.
Goldman to date has tried to lower expenses by tapping Citigroup credit-card veteran Bill Johnson in August, who was tasked with turning the bank’s credit-card partnerships into profitable endeavors.
If Johnson can’t make Apple’s credit-card program trend positively come 2024, Goldman will likely sell, people accustomed to the matter told The Journal.
Representatives for Goldman and Apple didn’t immediately reply to The Post’s request for comment.