American Express To Become Bank Holding Company

Law360, New York (November 11, 2008, 12:00 AM EST) -- Giving the credit card giant the power to tap into federal bailout funds so far only available to banks, the U.S. Federal Reserve has signed off on a request from American Express Co. to become a bank holding company.

Announcing its rapidly issued approval late Monday, the Federal Reserve said in light of the unusual circumstances affecting financial markets, “the board has determined that emergency conditions exist that justify expeditious action on this proposal.”

American Express said becoming a bank holding company gives the company flexibility...
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