Interesting! Citibank, HSBC, and other global giants must be thrilled.
The Federal Reserve on Monday granted AmEx’s request to become a commercial bank, opening the door for the credit card giant to accept deposits and permanently access financing from the Fed.
The Fed said it had approved the application for American Express and a related company, American Express Travel Related Services Co. Inc., to become bank holding companies.
The approval represented the latest reshaping of the financial services industry, which is undergoing its worst credit crisis in decades.
In announcing the action, the Fed cited “emergency conditions.” AmEx filed its application with the Fed on Nov. 5.
The Fed’s approval for American Express was similar to the decision it made in September to transform the country’s two biggest investment banks, Goldman Sachs Group Inc. (GS: 71.21, -6.57, -8.44%) and Morgan Stanley (MS: 14.58, -1.40, -8.76%), into bank holding companies.
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