Apple Card Deal Nearly Collapsed Before a Last-Minute CEO Call Saved It [Report]

One of the biggest financial handovers nearly fell apart just weeks before the finish line. A detailed new timeline of the Apple Card transition reveals that negotiations between Goldman Sachs and JPMorgan Chase had stalled so badly by early December that it took a personal intervention from the CEOs of both banks to keep the deal alive.



The friction came down to risk, according to the Wall Street Journal. Chase had already negotiated a discount on the roughly $20 billion portfolio to cover potential bad loans, but the bank wanted more insurance. Negotiators demanded a protection clause that would let Chase walk away if loan performance deteriorated during the long transfer process. Goldman, eager to exit the consumer lending business but aware the program had finally started turning a profit, didn't want to budge.


It wasn't until a December 8 phone call between Jamie Dimon and David Solomon that the logjam broke. The final terms underscore just how motivated Goldman was to exit the partnership. The portfolio is reportedly trading at a roughly 7 percent discount, meaning Goldman is taking a loss of over $1 billion to offload the program. Chase also got the protection clause it fought for.

The report highlights how difficult Apple's original terms made the sale. When the Apple Card launched, the tech giant insisted on approving nearly all applicants, which loaded the portfolio with subprime borrowers. Apple also blocked late fees—a standard revenue stream for issuers—and forced a calendar-based billing cycle that created significant customer service issues. These conditions scared off other potential suitors. Synchrony reportedly thought it had won the deal at one point, while American Express and Capital One also kicked the tires before passing or being passed over.

Behind the scenes, the timing made the situation even more awkward. Goldman had only recently agreed to extend its partnership with Apple through 2029 before quietly reversing course and looking for an exit months later. As Apple shopped the program around, multiple large issuers reviewed the terms but hesitated over the risk profile and operational constraints. Apple also explored unconventional options, including private-credit partners and fintech-backed structures, as it worked to keep leverage in the process. The prolonged search, combined with Apple's role as intermediary between Goldman and Chase, contributed to months of stalled negotiations before JPMorgan ultimately emerged as the preferred buyer.

For now, the dust has settled. Apple has confirmed that cardholders won't see any changes for quite a while, as the migration is expected to take about two years. To maintain continuity during that time, Goldman is reportedly offering retention bonuses to staff willing to stick around until the final handoff to Chase is complete.


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