NEW YORK--(Business Wire)--
American Express (NYSE: AXP) announced today that the U.S. Federal
Reserve has approved its application to become licensed as a bank
holding company and to be regulated by the Federal Reserve.
Qualifying as a bank holding company will provide American Express
maximum flexibility and stability in this challenging economic
environment. It aligns American Express' regulatory status with other
companies in the financial services industry, further diversifies the
Company's funding sources and access to capital, and provides
opportunities to expand its deposit-taking capabilities.
"Given the continued volatility in the financial markets, we want
to be best positioned to take advantage of the various programs the
federal government has introduced or may introduce to support U.S.
financial institutions. We will continue to build a larger deposit
base to broaden our funding sources. With Federal Reserve oversight we
should gain greater access to the capital on offer under the current
and any future government-sponsored programs. This decision to become
a bank holding company does not fundamentally change American Express'
core focus on the payments industry, nor will it require any
significant divestitures," said Kenneth I. Chenault, Chairman and
Chief Executive Officer, American Express Company.
American Express already has two long-standing U.S. bank
subsidiaries - American Express Centurion Bank, an industrial loan
bank chartered in Utah, and American Express Bank FSB, a federal
savings bank. Through these institutions, the Company issues
proprietary credit and charge cards, funds cardmember loans and offers
certificates of deposit.
American Express Company is a leading global payments and travel
company founded in 1850. For more information, visit
www.americanexpress.com.
Media:
Joanna Lambert, 212-640-9668
joanna.g.lambert@aexp.com
OR
Michael O'Neill, 212-640-5951
mike.o'neill@aexp.com
OR
Investors/Analysts:
Alex Hopwood, 212-640-5495
alex.w.hopwood@aexp.com
OR
Ron Stovall, 212-640-5574
ronald.stovall@aexp.com
Copyright Business Wire 2008
