Goldman's Credit-Card Exit Hampered by Lax Lending Standards
Tuesday, 10 September 2024, 13:45
Goldman's Credit-Card Dilemma
Goldman's credit-card exit is significantly hindered by lax lending standards, which have contributed to mounting losses. In recent years, the bank has adopted loose credit policies, primarily on its credit card offerings. This approach has backfired, complicating efforts to sell the General Motors card business.
The Impact of Loose Lending
- Higher default rates due to unrestrained lending practices.
- Decreased valuation of the credit card portfolio.
- Difficulty in attracting buyers for the General Motors card.
Future Outlook
Moving forward, Goldman must reassess its lending strategies to enhance its financial performance and facilitate a successful exit from the credit card market.
This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.