Nov. 11 2008 -- American Express Company has won U.S. Federal Reserve approval to become a commercial bank. It gained access to government funds. American Express is one of the largest credit card companies in the world. This ruling comes as the economy slows down at a record pace.
The Fed waived a 30-day waiting period on the application because of ``the unusual and exigent circumstances affecting the financial markets,'' according to a Fed statement released yesterday in Washington. Chairman Ben S. Bernanke and his team unanimously approved the plan and ruled in favor of American Express.
With the amount of bad customer loans increased in the United Statesa nd the unemployment rate rises , October has marked the first month since 1993 that most card companies were unable to sell bonds backed by customer payments. New York-based American Express said last month that credit-card holders failed to repay back loans in the third quarter at almost twice the rate of a year earlier.
This story is just unfolding as their are still problems in the financial sector. Stay tuned for more news and follow up to this story.