AXP - New bank

Discussion in 'Wall St. News' started by nutmeg, Nov 10, 2008.

  1. WASHINGTON/NEW YORK, Nov 10 (Reuters) - The Federal Reserve Board has approved an application by American Express Co (AXP.N: Quote, Profile, Research, Stock Buzz) to become a bank holding company, the central bank said on Monday.

    The move will allow American Express to secure funds from deposits, which could be cheaper than borrowing in bond markets.

    "In light of the unusual and exigent circumstances affecting the financial markets ... the Board has determined that emergency conditions exist that justify expeditious action on this proposal," the Fed said in a statement.

    American Express follows Goldman Sachs Group Inc (GS.N: Quote, Profile, Research, Stock Buzz) and Morgan Stanley (MS.N: Quote, Profile, Research, Stock Buzz), which became bank holding companies after decades of having relied on debt markets for funding.

    American Express' borrowing costs relative to a benchmark rate have risen dramatically this year as investors have become increasingly skittish about the company facing rising customer defaults. (Reporting by Patrick Rucker in Washington and Dan Wilchins in New York; Editing by Dan Grebler; editing by Jeffrey Benkoe)
  2. S2007S


    They are trying to hard......

    Think they should throw in the towel or do they have a chance....

    Remember there is now over $1 trillion worth of credit card deliquencies about to unfold and this will be the next major economical problem.
  3. This bailout BS is getting out of hand.
  4. W4rl0ck


    I was just about to short AXP down to zero.

    This is seriously over the top.

    Something is going to cause the Fed to Epically Fail.

    Maybe a downgrade of Treasuries
  5. LMFAO.

    Unreal. Truly unreal.