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Credit card firm American Express approved to become bank holding company

Martin Crutsinger, The Associated Press
November 10, 2008 - 6:30 p.m.

WASHINGTON - The U.S. Federal Reserve has granted the request of credit card giant American Express Co. to become a bank holding company.

The Fed announced late Monday that it had approved the application for American Express and a related company, American Express Travel Related Services Co. Inc., to become bank holding companies.

The surprise announcement would give American Express access to low-cost financing from the U.S. Federal Reserve.

The story continues below...