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The Goldman Sachs Group, Inc. (GS) - $25 value - yours FREE >>
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Goldman Acquires GM's Credit Card Business From Capital One
The Goldman Sachs Group (GS - Free Report) has acquired General Motors Co's (GM - Free Report) credit card unit for about $2.5 billion from Capital One Financial (COF - Free Report) . The news was first reported by The Wall Street Journal.
Barclays (BCS - Free Report) was also one of the bidders for the world's largest automobile manufacturer’s credit card business.
This forms Goldman’s second credit card partnership with a big name. Last year, the company had partnered with Apple and introduced a credit card with simple application process, no fees. It encouraged customers to pay less interest while guarantying security.
Goldman is planning to undertake restructuring in line with the strategy that was unveiled earlier this January. Markedly, the bank’s latest move reflects its ongoing commitment to organizing the firm in a client-centric way.
The company created a new unit — Consumer & Wealth Management — which will be co-led by Stephanie Cohen, one of the most senior female bankers of Goldman and Tucker York, beginning 2021.
The changes reflect chief executive officer David Solomon's efforts in bringing Goldman on par with other investment banks like JPMorgan and Citigroup, which cater consumer businesses on a large scale.
Also, the company remains well poised to counter the declining revenues by foraying into new markets and diversifying income sources, especially consumer banking business.
Shares of the company have gained 26.4% in the past six months compared with 19.7% growth registered by the industry.
Goldman currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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