Please ensure Javascript is enabled for purposes of website accessibility

Goldman Sachs Reportedly in Talks to Take Over JetBlue's Credit Card Operations

By Eric Volkman - Updated Mar 19, 2021 at 8:56PM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Once a financial services provider to the rich and powerful, the investment bank continues its push into traditional consumer segments.

Seemingly determined to increase its presence in consumer finance, Goldman Sachs (GS -1.99%) is negotiating with JetBlue Airways (JBLU -2.94%) to manage the carrier's credit card program, according to a report Thursday in The Wall Street Journal citing "people familiar with the matter."

Goldman is thus trying to wrench away that business from Barclays (BCS -2.89%), the U.K.-based banking group that currently issues and manages the JetBlue cards. Barclays is also talking with JetBlue in an attempt to keep the job.

A woman choosing from a set of credit cards.

Image source: Getty Images.

Goldman, the former exclusive white-shoe investment bank, has made a concentrated push into more Main Street segments, like consumer banking, with its Marcus brand.

Goldman is a relative newcomer to credit cards, too, although it has already racked up important wins in that business. It is the issuer and manager of Apple's inaugural credit card, launched in mid-2019, and last year was chosen by General Motors for the same work with its credit card, replacing Capital One as the issuer/manager. The GM arrangement should begin in September.

The Journal article said that outstanding balances on the credit cards under Goldman's wing amounted to $4.3 billion in December, which was more than twice the amount over the same period the previous year. But the current amount is still small for a credit card issuer in big banking; JPMorgan Chase (NYSE: JPM), for example, had $144 billion in the same category in its fourth quarter of 2020.

Goldman hasn't yet commented on its apparent play for the JetBlue card business. Barclays and JetBlue have also not made any official statement.

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

The Goldman Sachs Group, Inc. Stock Quote
The Goldman Sachs Group, Inc.
$306.73 (-1.99%) $-6.24
JetBlue Airways Corporation Stock Quote
JetBlue Airways Corporation
$9.92 (-2.94%) $0.30
Barclays PLC Stock Quote
Barclays PLC
$7.73 (-2.89%) $0.23

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning service.

Stock Advisor Returns
S&P 500 Returns

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 05/19/2022.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.