Gimme, gimme, gimme

Everyone wants a bail out from Uncle Sam. The line seems to be getting pretty long...too bad the government is going to destroy the currency (and the lives of millions) in the process. Go back and read our strategy if you want to survive this madness!

American Express gets bank-holding company nod

By Lisa Twaronite, MarketWatch
Last update: 6:58 p.m. EST Nov. 10, 2008

SAN FRANCISCO (MarketWatch) -- American Express Co. got approval from the Federal Reserve Board to form a bank-holding company, the central bank said late Monday.

In becoming a holding company, the credit-card giant would get access to the Federal Reserve's emergency-lending facilities, but also will be subject to greater scrutiny by regulators.

The U.S. central bank said that both American Express and its affiliate American Express Travel Related Services are approved to form bank-holding companies, as the Amex group converts its Salt Lake City -based American Express Centurion Bank into a full bank.

The Fed waived the normal 30-day waiting period on the application.

"In light of the unusual and exigent circumstances affecting the financial markets and all other facts and circumstances, the board has determined that emergency conditions exist that justify expeditious action on this proposal in accordance with the provisions of the [Bank Holding Company] Act and the board's regulations," the Fed said.

"The record indicates that consummation of the proposal would create a stronger and more diversified financial-services organization and would provide the current and future customers of Amex, Amex Travel and Amex Thrift with expanded financial products and services," the Fed wrote in its approval. "[B]ased on all the facts of record, the board has concluded that consummation of the proposal can reasonably be expected to produce public benefits that would outweigh any likely adverse effects."

American Express said last month that it would cut 10% of its staff, suspending management salary increases and instituting a hiring freeze, as well as take a pretax restructuring charge of up to $440 million against fourth-quarter results to cover layoff expenses.

Earlier in October, the company said that quarterly net income fell 24% as it set aside more money to cover bad loans. Net income came in at $815 million, or 70 cents a share, compared with $1.07 billion or 90 cents a share a year earlier. Income from continuing operations was $861 million, or 74 cents a share, in the latest quarter, Amex reported.

In September, Wall Street was transformed when investment banks Morgan Stanley and Goldman Sachs Group received Fed approval to convert to bank-holding companies.

Lisa Twaronite reports for MarketWatch from San Francisco.

-------------------
Buy Gold & Silver