Goldman moves to unload GM credit card

Goldman Sachs plans to begin a process to unload its credit-card program in another step away from its failed foray into consumer lending.

The bank on Tuesday informed a group of employees within its Platform Solutions division, who work on the GM card, that a process to find a new issuer will begin soon, people familiar with the matter said. GM is expected to run the process.

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The credit-card program is largely marketed toward people who buy and own General Motors cars. Goldman is also the issuer for the Apple credit card, which is much larger. 

Goldman has been looking at how to lower expenses associated with its card programs and determined that it was likely to move forward with selling the partnerships if it couldn’t cut costs sufficiently.

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The bank has held conversations with American Express to gauge the card giant’s interest in taking over the Apple program, The Wall Street Journal previously reported. The conversations also involved discussions about whether Amex would be interested in the GM program. It isn’t clear whether Amex will participate in the sales process. 

Goldman began issuing the GM credit cards early last year. It had big ambitions for cars as e-commerce portals that have yet to be fully realized. Goldman employees also grew frustrated at what they saw as too little effort by GM car dealers to promote the card to consumers.

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Credit cards are the last big chunk of what remains of Goldman’s consumer-lending business after the firm decided to dramatically scale back what had been an ambitious drive to become a bigger player in main-street finance. Goldman is selling specialty lender GreenSky after buying it just last year, and the bank has already unloaded most of its portfolio of personal loans.

Goldman will continue to run the GM program until a new issuer is found. It told employees Tuesday that they will be eligible for pay equal to one year of their compensation if their jobs are eliminated.