American Express to Reach for the TARP
Just days after the story about how American Express is cutting credit limits just by where you shop (story here), today is now going to reach for the tax payer goody bag.
American Express gets approval to receive $3.39 billion as part of government’s rescue program
NEW YORK (AP) — American Express Co. said Tuesday it received preliminary approval to obtain $3.39 billion in capital as part of the government’s $700 billion bank investment program.
Primarily a credit card lender, American Express changed its structure to become a bank holding company last month. The change in status allows American Express to tap a wide array of government funding and lending programs, including the bank investment program.[...]
[...]CIT, a New York-based commercial finance firm, had its status change approved Monday, and received preliminary approval to obtain $2.33 billion as part of the investment program earlier Tuesday.
[...]The government investment, administered by the U.S. Treasury Department, is part of a broader program to invest in banks amid the ongoing credit crisis. It’s an effort to stabilize the financial services sector and spur lending between banks and to consumers and businesses.[...]
Hey, the retailers like Nordstrom, Saks and Macy’s issue credit, why can’t they become a “bank holding company” also? (BHC)
The home building industry lends to their customers. BHC them too!
I have a friend who is making payments to the IRS. (A loan to the government or “all of us”) He might qualify to be a BHC!
American Express is the worst credit card company I have ever dealt with! They cut credit without giving you notice and for no reason.
I agree. They just did it to me when I just needed the credit to do business.
I agree with Jolene–where does American Express get off cutting credit limits drastically that you can’t even do business. AMEX managers/upper management are hypocrities b/c when they needed the TARP money from the Federal Government to survive, they got $3.39 billion at the end of 2008 and they repaid it back when they were doing better. This money is the tax payers money. However, when small businesses and independents who have high credit limits need their AMEX cards to survive, their credit limits get cut drastically when they badly need them to survive. AMEX company is a hypocritcal company! AMEX needs to change!!!