 |
|
|
|
|
MENA Financial Directory
|
|
|
|
 |
|
|
Quick Poll
Are Takaful companies likely to see significant writedowns in 2010 as a result of real estate investments?
|
|
|
 |
|
|
|
|
Thursday, November 13 2008 |
|
|
Retail Banking
$3.5 billion – that’ll do nicely, thank you!
American Express is about to charge TARP $3.5 billion after change of status to bank holding company.
Charge card and credit card operator American Express (Amex) is reported to be about to take some $3.5 billion in funds from the US Troubled Asset Relief Program (TARP). The move follows approval from the US central bank, the Federal Reserve, for American Express to become a commercial bank, allowing it to take deposits.
The Fed says it has nodded through the change in Amex’s status because of “the unusual and exigent circumstances affecting the financial markets”. The statement went on to say, "The Federal Reserve board has determined that emergency conditions exist that justify expeditious action on this proposal."
AMEX, with total consolidated assets of approximately $127 billion, provides charge and credit payment-card products and travel-related services. AMEX Bank has total consolidated assets of approximately $25.3 billion and controls deposits of approximately $7.2 billion.
Qualifying as a bank holding company aligns American Express' regulatory status with other companies in the financial services industry and diversifies funding sources and access to capital. “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 US financial institutions,” said Kenneth I. Chenault, Chairman and Chief Executive Officer, American Express Company.
|
|
|
|
|