Goldman Sachs, Barclays bidding for GM’s credit card business, report says

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Goldman Sachs Group Inc. is looking to buy General Motors’ credit card business as it looks to bolster its consumer banking arm, the Wall Street Journal reported Wednesday, citing people familiar with the matter.

Barclays is also among a small number of bidders for the automaker’s credit card business, which has about $3 billion in outstanding balances, the report said, adding that a decision is expected in the next few weeks.

Capital One has issued the GM card since 2012 and still has about a year left on the contract, the Journal reported. The paper also reported that there’s no guarantee GM will replace its incumbent card issuer.

Goldman currently has a much smaller presence in consumer banking, unlike larger peers such as JPMorgan Chase & Co. and Citigroup Inc., and it is an area CEO David Solomon has been aggressively looking to strengthen.

Goldman launched a credit card with Apple Inc last year that is synched with iPhone users’ Apple Wallet and can be used to buy Apple products at a discount.

GM and Barclays did not immediately respond to Reuters requests for comment, while Goldman declined to comment.

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Saurabh Shukla

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