London Daily

Focus on the big picture.
Thursday, Jul 10, 2025

Regulator probing Goldman over Apple Card: Gender bias must be rooted out of process

Regulator probing Goldman over Apple Card: Gender bias must be rooted out of process

Companies that deploy biased algorithms are responsible for potential discriminatory outcomes, the regulator who is probing Goldman Sachs’ Apple Card.

“Whether the intent is there or not, disparate impact is illegal,” says Linda Lacewell, the superintendent of New York’s Department of Financial Services.

Lacewell’s agency is looking into allegations that the algorithm behind Goldman Sachs’ Apple Card is biased against women.

Companies that deploy biased algorithms -even unknowingly -are still responsible for potential discriminatory outcomes, the Wall Street regulator who is probing Goldman Sachs’ Apple Card told CNBC on Monday.

“Algorithms don’t get immunity from discrimination,” said Linda Lacewell, superintendent of New York’s Department of Financial Services, which is investigating claims that Goldman Sachs’ Apple Card discriminated against women when determining credit limits.

“Whether the intent is there or not, disparate impact is illegal,” Lacewell added on “Squawk Alley.”

The inquiry follows viral allegations from tech entrepreneur David Heinemeier Hansson, who said Thursday on Twitter that Apple Card gave him a credit limit 20 times higher than the one it gave his longtime wife, even though she has a higher credit score than he does and the couple jointly files tax returns.

Hansson called Apple Card, which Goldman built in partnership with the iPhone maker, a “f------ sexist program.”

Apple co-founder Steve Wozniak later said that Apple Card gave him 10 times the credit limit that his wife received.

In a statement released Sunday, Goldman said it does not consider gender in credit decisions and evaluates all applications independently. Goldman also said it looking into ways for family members to share a single Apple Card account.


Lacewell said that her agency, which regulates banks in New York, has been in contact with representatives from Goldman and could sit down with them as soon as Tuesday.

When asked whether DFS was investigating both Goldman and Apple, Lacewell responded that it was looking into “the practice.”

“Goldman is the bank that stands behind the Apple Card,” she continued. “We actually license Goldman ... We’ve asked the company to begin explaining what the algorithm is.”

In New York, discrimination in financial services based on gender or any other protected class is illegal, Lacewell noted.

“It is the person who uses the algorithm, the company that uses the algorithm, that is responsible to make sure it is not being used with discriminatory impact against protected classes,” Lacewell said, arguing that developers and sellers of algorithms need to do “appropriate testing” to ensure there is no bias.

“There is no such thing as, ‘the company didn’t do it, the algorithm did,’” she said.

Consumers across all industries deserve transparency into the “black box” of algorithms, Lacewell said. In this sense, algorithms are rules programmed into computers to produce desired outcomes or actions.

“Consumers are entitled to know how these decisions are being made that affect their daily lives,” she said. “Your credit rating agency sends you a letter and says why you’ve been denied credit. This should really be no different.”

Apple Card became available to all U.S. consumers in August, following a limited preview earlier in the month.

In a conference call in October, Goldman CEO David Solomon said the bank’s rollout of the Apple Card had been met with strong demand.

“From an operational and risk perspective, we’ve handled the inflows smoothly and without compromising our credit underwriting standards,” Solomon said, adding that Goldman believed it was “the most successful credit card launch ever.”

The question of bias in algorithms is not restricted to only this allegation against Goldman, Lacewell noted, pointing to a recent study that found a medical algorithm favored white patients over black patients who were sicker.

Because of that study, Lacewell said her agency also sent an inquiry to UnitedHealth Group, whose subsidiary, Optum, sold a tool with that algorithm.

“These types of issues and allegations, if these are true, it’s very corrosive,” she said.

Newsletter

Related Articles

0:00
0:00
Close
Severe Heatwave Claims 2,300 Lives Across Europe
NVIDIA Achieves Historic Milestone as First Company Valued at $4 Trillion
Declining Beer Consumption Signals Cultural Shift in Germany
Linda Yaccarino Steps Down as CEO of X After Two Years
US Imposes New Tariffs on Brazilian Exports Amid Political Tensions
Azerbaijan and Armenia are on the brink of a historic peace deal.
Emails Leaked: How Passenger Luggage Became a Side Income for Airport Workers
Polish MEP: “Dear Leftists - China is laughing at you, Russia is laughing, India is laughing”
BRICS Expands Membership with Indonesia and Ten New Partner Countries
Weinstein Victim’s Lawyer Says MeToo Movement Still Strong
U.S. Enacts Sweeping Tax and Spending Legislation Amid Trade Policy Shifts
Football Mourns as Diogo Jota and Brother André Silva Laid to Rest in Portugal
Labour Expected to Withdraw Support for Special Needs Funding Model
Leaked Audio Reveals Tory Aide Defending DEI Record
Elon Musk Founds a Party Following a Poll on X: "You Wanted It – You Got It!"
London Stock Exchange Faces Historic Low in Initial Public Offerings
A new online platform has emerged in the United Kingdom, specifically targeting Muslim men seeking virgin brides
Trump Celebrates Independence Day with B-2 Flyover and Signs Controversial Legislation
Boris Johnson Urges Conservatives to Ignore Farage
SNP Ordered to Update Single-Sex Space Guidance Within Days
Starmer Set to Reject Calls for Wealth Taxes
Stolen Century-Old Rolls-Royce Recovered After Hotel Theft
Macron Presses Starmer to Recognise Palestinian State
Labour Delayed Palestine Action Ban Over Riot Concerns
Swinney’s Tax Comments ‘Offensive to Scots’, Say Tories
High Street Retailers to Enforce Bans on Serial Shoplifters
Music Banned by Henry VIII to Be Performed After 500 Years
Steve Coogan Says Working Class Is Being ‘Ethnically Cleansed’
Home Office Admits Uncertainty Over Visa Overstayer Numbers
JD Vance Questions Mandelson Over Reform Party’s Rising Popularity
Macron to Receive Windsor Carriage Ride in Royal Gesture
Labour Accused of ‘Hammering’ Scots During First Year in Power
BBC Head of Music Stood Down Amid Bob Vylan Controversy
Corbyn Eyes Hard-Left Challenge to Starmer’s Leadership
London Tube Trains Suspended After Major Fire Erupts Nearby
Richard Kemp: I Felt Safer in Israel Under Attack Than in the UK
Cyclist Says Police Cited Human Rights Act for Riding No-Handed
China’s Central Bank Consults European Peers on Low-Rate Strategies
AI Raises Alarms Over Long-Term Job Security
Saudi Arabia Maintains Ties with Iran Despite Israel Conflict
Musk Battles to Protect Tesla Amid Trump Policy Threats
Air France-KLM Acquires Majority Stake in Scandinavian Airlines
UK Educators Sound Alarm on Declining Child Literacy
Shein Fined €40 Million in France Over Misleading Discounts
Brazil’s Lula Visits Kirchner During Argentina House Arrest
Trump Scores Legislative Win as House Passes Tax Reform Bill
Keir Starmer Faces Criticism After Rocky First Year in Power
DJI Launches Heavy-Duty Coaxial Quadcopter with 80 kg Lift Capacity
U.S. Senate Approves Major Legislation Dubbed the 'Big Beautiful Bill'
Largest Healthcare Fraud Takedown in U.S. History Announced by DOJ
×