American Express to Become Bank Holding Company

[katty]

more: http://dealbook.blogs.nytimes.com/2008/11/10/american-express-to-become-bank-holding-company/

American Express to Become Bank Holding Company

November 10, 2008, 7:05 pm Wall Street BailoutIndustries Financial ServicesThe Federal Reserve on Monday evening granted a request by American Express to become a bank holding company, giving it access to low-cost financing from the Fed.

The Fed said it had approved the application for American Express and a related company, American Express Travel Related Services, to become bank holding companies. The approval represented the latest reshaping of the financial services industry, which is undergoing its worst credit crisis in decades.

In announcing the action, the Fed said “emergency conditions exist that justify expeditious action on this proposal.”

“Given the continued volatility in the financial markets,” said Kenneth I. Chenault, chief executive of American Express, “we want to be best-positioned to take advantage of the various programs the federal government has introduced or may introduce to support U.S. financial institutions.”