American express gets instant approval to become a bank and bypass the normal 30 day waiting period.
American Express Co. won Federal Reserve approval to convert to a commercial bank, gaining access to funds as credit losses build and sales of asset-backed bonds plummet.
The Fed waived a 30-day waiting period on the application ``in light of the unusual and exigent circumstances affecting the financial markets,'' according to a statement released today in Washington. Chairman Ben S. Bernanke and his colleagues unanimously voted for the action.
So American express is already to line up to the discount window and who wants to bet bail out money is sure to follow?
and indeed, buried within the article:
Given the continued volatility in the financial markets, we want to be best positioned to take advantage of the various programs the federal government has introduced,'' Chief Executive Officer Kenneth Chenault said in a statement today. ``We will continue to build a larger deposit base to broaden our funding sources.''
American Express used the Fed's commercial paper facility for the first time on Oct. 29, joining a growing list of borrowers that have sold tens of billions of dollars of the short-term debt to the central bank as credit became more difficult to obtain.
Ok, fellow Americans. May I suggest everyone incorporate themselves and then apply to become a bank. For it seems only then, despite any past discretion even loan sharking, you too can get some bail out money.