Instant Approval! You're Approved! American Express to Become Bank

American express gets instant approval to become a bank and bypass the normal 30 day waiting period.

American Express Gets Fed Approval to Convert to Bank:

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.

Subject Meta: 

Forum Categories: 

Gonna Be a Bank Holding Company when I grow up, Dad

Bank Holding Companies were the the only way to go for J.P.
Morgan, Salmon Chase and countless robber barrons from the 1880s until Glass Steagul broke up banking and brokerage.

Clinton re-authorized brokers and banks to join in 1998.
It is so easy to predict and understand this crisis and its next wave. Put banks and brokerage together and there is a perfect formula for disaster.

Disaster has arrived at Merrill Lynch. In the 90's, Merrill moved more aggressively to blur the lines between bank and broker. Merrill should be the poster boy for this crisis. But what do AMEX and Sach do? Imitate Merrill, what else?
Once all non-bank brokers become deposit taking banks who may trade securities,the second and big wave of the Tsunami will be visible and rising offshore.

Burton Leed