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Thread: Latest dumbfuckery from the Fed: Amex gets full bank status, lines up at trough

  1. #1
    Friend of Gossip Rocks! buttmunch's Avatar
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    Default Latest dumbfuckery from the Fed: Amex gets full bank status, lines up at trough

    The Federal Reserve on Monday evening granted a request by American Express to become a bank holding company, giving it access to low-cost financing from the Fed.

    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. 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 said “emergency conditions exist that justify expeditious action on this proposal.”

    “Given the continued volatility in the financial markets,” said Kenneth I. Chenault, chief executive of American Express, “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.”

    Mr. Chenault said in a statement that the decision to become a bank holding company would not fundamentally alter the company’s core focus on the credit card payments industry, nor would it require any significant divestitures of its operations.

    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 and Morgan Stanley, into bank holding companies.

    That move bolstered the two institutions after the collapse of another investment bank, Lehman Brothers, which became the largest bankruptcy filing in history. Goldman Sachs and Morgan Stanley gained the ability to borrow federal money and build a stable base of deposits in hopes of reassuring investors and other banks.American Express to Become Bank Holding Company - Mergers, Acquisitions, Venture Capital, Hedge Funds -- DealBook - New York Times

    I wonder if it's too late for me to get bank status and thus a piece of the bailout pie.
    'Those who sacrifice liberty for security deserve neither.' Ben Franklin

    "When fascism comes to America, it will be wrapped in the flag and carrying the cross."
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    Elite Member ana-mish-ana's Avatar
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    This shows that credit card companies are gonna be the next thing to fail.

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    Elite Member McJag's Avatar
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    Quote Originally Posted by ana-mish-ana View Post
    This shows that credit card companies are gonna be the next thing to fail.
    That's what I'm thinking...
    I didn't start out to collect diamonds, but somehow they just kept piling up.-Mae West

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    Elite Member KrisNine's Avatar
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    Apparently, there is a big deal going on with Amex. They are lowering peoples spending ability. People that have in the past, had the ability to put $10,000 on their cards are having their "limit" reduced to $1500. Even though Amex really has no limit, they go by your spending and payment history.

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    Elite Member RevellingInSane's Avatar
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    Amex is now considered a bank?

    I am filing incorporation papers today, get my status as a banking institution, extend credit to myself, and hell, a few friends, then let the feds pay it all off for us.

    Whatever happened to the cost and risk involved in doing business. No one is bailing out the self-employed or the family businesses who can't even get a loan to stay afloat.



  6. #6
    Friend of Gossip Rocks! buttmunch's Avatar
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    Amex sucked before this and now I just hate them more. A luxury credit card company is getting bailed out and this will help the economy how? Meanwhile people are losing their homes, their savings, their lives. Fucking hell.
    'Those who sacrifice liberty for security deserve neither.' Ben Franklin

    "When fascism comes to America, it will be wrapped in the flag and carrying the cross."
    --Sinclair Lewis

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