American Express Gets Bank Status

Business | November 11, 2008, Tuesday // 00:00
American Express Gets Bank Status: American Express Gets Bank Status The US Federal Reserve granted its approval to Credit card company American Express to get a commercial bank status. File photo

Credit card company American Express has announced that the Federal Reserve granted it approval to become a commercial bank, thus enabling it to take deposits and get access to Fed funding.

"The Federal Reserve board has determined that emergency conditions exist that justify expeditious action on this proposal," the central bank said after allowing Amex to change status.

The move means Amex will be regulated by the Federal Reserve, while in exchange the company will have bigger access to government-sponsored financial aid.

American Express has seen its liquidity position deteriorate over the past year, reporting a 24 percent drop in quarterly earnings last month.

We need your support so Novinite.com can keep delivering news and information about Bulgaria! Thank you!

Business » Be a reporter: Write and send your article

Advertisement
Advertisement
Bulgaria news Novinite.com (Sofia News Agency - www.sofianewsagency.com) is unique with being a real time news provider in English that informs its readers about the latest Bulgarian news. The editorial staff also publishes a daily online newspaper "Sofia Morning News." Novinite.com (Sofia News Agency - www.sofianewsagency.com) and Sofia Morning News publish the latest economic, political and cultural news that take place in Bulgaria. Foreign media analysis on Bulgaria and World News in Brief are also part of the web site and the online newspaper. News Bulgaria