The Fed waived the normal 30-day waiting period IT'S BANK AMERICAN EXPRESS

[seemslikeadream]

http://www.forbes.com/markets/2008/11/10/american-express-credit-markets-equity-cx_ra_1110markets41.html

After years of battling commercial banks in the credit-card market American Express on Monday became one.

As with Morgan Stanley (nyse: MS - news - people ) and Goldman Sachs (nyse: GS - news - people ) before it, the Federal Reserve announced on Monday it approved credit-card company American Express (nyse: AXP - news - people ) and its American Express Travel Related Services unit to become bank holding companies.

The Fed waived the normal 30-day waiting period on the application “in light of the unusual and exigent circumstances affecting the financial markets,” the central bank said.

In September Goldman Sachs and Morgan Stanley sought and won bank holding company status from the Federal Reserve in an expedited weekend process that also waived the rules in the interest of speed.

Hoping to avoid the fates of Lehman Brothers, Bear Stearns and Merrill Lynch, the newly minted banks have agreed to trade near limitless freedom--as well as the high risks and multibillion-dollar paychecks that come along with it--for the strict standards and accountability of Federal Reserve oversight. The moves, which provide access to the Fed's lending programs -- possibly important to American Express as an alternative to raising funds in the asset-backed securities market -- suggest some urgency to the appeals. (See “ Why Goldman, Morgan Stanley Raced For The Fed.”)



http://money.cnn.com/2008/11/10/news/companies/amex/?postversion=2008111020

The shift, however, indicates deep problems at the company, said Red Gillen, senior analyst at Celent.

"They are clearly in trouble," he said. "I don't know if we knew how bad things actually were even two weeks ago."

http://www.ft.com/cms/s/0/bd0b8696-af86-11dd-a4bf-000077b07658,dwp_uuid=e8477cc4-c820-11db-b0dc-000b5df10621.html?nclick_check=1

will give the credit card group permanent access to Federal Reserve funds and could facilitate consolidation in the sector.

[Muttocracy]

1. I thought I heard that on the radio earlier tonight. thanks. nt

[roody]

2. American Express is on the Mormon-owned list.

[Clovis Sangrail]

4. it's a publically traded company

and it has a history of PRO gay stances and offers benefits to same sex domestic partners.

before you parrot this crap look it up

[Mojorabbit]

3. Wow

the news just gets better and better doesn't it. They must have been in pretty bad shape.