New York lender Goldman set to purchase GM’s credit card wing for $2.5 billion



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New York lender Goldman set to purchase GM’s credit card wing for $2.5 billion

The New York City-based American multinational lender and financial services provider Goldman Sachs Groups Inc. has been in an advanced stage talk with the Detroit carmaker General Motor Co.’s credit card business for an upsum of about $2.5 billion, a Wall Street Journal report published late on Thursday had unveiled citing people familiar with the subject-matter who wished to remain anonymous given the scale of sensitivity of the issue.

In point of fact, according to the Wall Street Journal report, there had been a bidding war under the screen between the UK-based lender Barclays Plc. and the American financial services provider Goldman Sachs, while the Wall Street lender had won the $2.5 billion deal over Barclays Plc., the report said.

Goldman & GM’s credit card issuer Capital One agrees upon purchase price

Aside from that, Thursday’s Wall Street Journal report had also quoted one of its banking sources as saying that the General Motor Co.’s credit card issuer Capital One Financial Corp., the McLean, Virginia-based American holding engaged primarily in credit cards, auto loans, banking and saving accounts, and the Wall Street lender Goldman Sachs had reached a binding agreement over the purchasing price, while the deal could be finalized as early as by the coming weeks.

Concomitantly, followed by the reveal of media headlines on a plausible acquisition of GM’s credit card unit, several analysts were quoted saying that the acquisition would flesh up Goldman Sachs’ consumer banking business that had been facing off a flurry of odds amid a sharply softening earning of the lender’s trading and investment banking operations.

If truth is to be told, unlike the New York City lender’s major peers in the Wall Street likes of JPMorgan Chase & Co. alongside Citigroup Inc., Goldman Sachs Groups Inc. has a limited presence in the consumer banking, while the Goldman Chief Executive David Solomon was reportedly seeking to strengthen the lender’s consumer banking division.