AMEX to become 'bank'

[Anonymous]

AMEX received fed approval to become a bank holding company....

From Bloomberg:

http://www.bloomberg.com/apps/news?pid=20601087&sid=aMANIYqXWJjg&refer=home

Is this to get bailout money?  Why would AMEX voluntarily add all that regulation????

Message Edited by writemikep on 11-10-2008 04:57 PM

[GST2008]

Becoming a bank could be their way of retooling, expanding, and offering more products.  They already offer some of the most sought after and difficult to claim credit cards.  This would also mean that they have access to a pretty impressive mailing list and also relationships with countless potential investors and business owners.  BOA, WAMU, HSBC, and Capital One all are banks, why not AmEx?  Even Discover has banking products on their website (CDs and Money Markets).

[Anonymous]

No.... from that article:

"The Fed lets banks post consumer debt, such as credit card receivables, as collateral for loans from its discount window, which carry a 1.25 percent interest rate"

( emphasis added )

[GST2008]

lol out of my limited range of knowledge then but I'm sure it's to make a profit of some kind

[fused]

This is a bailout by American taxpayers...I'm very upset that Amex was allowed to do this. I might very well close my accounts with them and move on.

[Anonymous]

CNNMoney has more (and yes, it is a bailout):

http://money.cnn.com/2008/11/10/news/companies/amex/index.htm?postversion=2008111019

This might explain some of the bizarre (paranoid??) behavior about AMEX reported on the forum lately....

[fused]

So, what does Amex do now? Now that they will have access to an unlimited amount of financing (my money, your money, taxpayers money), will they go and underwrite and approve sub-prime and near-prime apps and poop on their uber-prime card holders who made them what they are. And, ff Amex is going to keep cutting back on perks, I will kick them to the curb. I won't pay more for less. They can go fly a kite for all I care.

[Anonymous]

it is definitely a bailout. Amex as we know it is over.  they are no longer the exclusive club they used to be. hmmm! the genius of Kenneth Chenault. they should've gotten rid of him instead of laying off those 7000 employees.

[manyquestions]

Maybe they will stop CLD so many people, now that they have access to more funding.

[Watchmann]

Forget about what this means to AMEX and its cardholders.  Everyone needs to take control of their own credit situation which means paying down their liabilities, and keep new charges to a minimum.  You can't control what AMEX is going to do internally.  Don't try to second guess them.  It it out of your hands.  Complaining about them won't help you.