The Federal Reserve Board on Monday announced its approval of the applications and notices under sections 3 and 4 of the Bank Holding Company Act by American Express Company and American Express Travel Related Services Company, Inc., both of New York, New York, to become bank holding companies on conversion of American Express Centurion Bank, Salt Lake City, Utah, to a bank, and to retain certain nonbanking subsidiaries, including American Express Bank, FSB, Salt Lake City, Utah.
By doing this AMEX can accept deposits which will then be used to cover losses from their credit card operations. Isn't this nice, the Federal Reserve will use taxpayer money to cover losses by this company. Why don't they tighten up their credit policies and accept their losses as others must do. What is next for the other credit card issuers or they just out of luck as the Federal Reserve and Treasury play favorites. What is their interest and stake in this?
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