American Express to Become Bank Holding Company

American Express now to become Bank Holding Company. The Federal Reserve has approved the request from American Express to bank holding company. Now the American Express is accessible to low-cost financing from the Fed, according to media reports. 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. This could be a major decision by the Fed to restructure 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.” Source