American Express lines up for bailout money
Cha-ching. Does your wallet feel lighter?
Just across the news wire: The Federal Reserve has agreed to a request by American Express to “become a bank holding company.”
Bailout bonanza here they come!
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A lot of people being laid off while the idiots get rewarded. It’s obscene.
I’ve been giving them money for years..
Now I have to do it twice??
They probably think that with the DemoCommies in a position to “Rule”, they had better get on the gravy train before the money is redistributed to Visa..
Suuuureee. Why the FREAK not, I mean, Tax payers will pick up the bill!!!!
grrrrrrrr
With all these bailouts, who is going to bail me out when I do not any money left to pay my bills?
Enough already.
Excellent. I’ll stop paying my bill then. That way they can’t get it twice: 1st in my payment, and 2nd from my taxes.
Whoops! I guess if they get a part of the bailout money then I wont need to renew my Platinum Card in a few weeks…
Could I get a finance professional help me out here…
Link: Bank Holding Company
——————–
Becoming a bank holding company makes it easier for the firm to raise capital than if it remained a traditional bank. It can assume debt of shareholders on a tax free basis, borrow money, acquire other banks and non-bank entities more easily, and issue stock with greater ease. It also has a greater legal authority to repurchase its own stock once issued.
In return, bank holding companies agree to increased regulation and examination by not only the SEC, but several other branches of the government. Their ability to take risks will be vastly diminished, and they’ll be required to hold more capital on reserve.
Good Lord, I am so glad that I am out of the market and slashing income. Y’all hepp them folks out, now. When Barry is gone, will someone let me know? I’ll get back to working when they are gone.
Don’t leave home without a bailout.
The taxpayers are not the bank for these stupid bailouts. Congress is spending the money that they hope we will make.
This is all unbelievable. I don’t even know what nation this is anymore.
THANKS A LOT BUSH! Just because you did a good job with the terrorists, in general, now we have to live with THIS?
Now we have a virtual COMMUNIST in the White House??
Why have I been following the rules all these years? I’m a real shmuck.
I’m being too clever by half, but the thread title reminds me of this; where the taxpayers are the cement block.
You think this is bad? Wait until “the One” takes office.
This is only the beginning. Let’s not forget Peggy the Moocher.
This is pathetic.
You called it months ago Michelle. God Help us.
BOYCOTT AMERICAN EXPRESS
Consumer activism works.
a chunk of the $700 billion dollar taxpayer-funded bailout:
Don’t leave home without it!
Maybe they’re going to bail them out by cleaning us out.
Just where the heck is this power found in the U.S. Constitution?!?! I really would like to know.
Crickets………………………………………..
Can one of you smart people explain the significance of them becoming a bank holding company? What does that mean?
On November 10th, 2008 at 7:06 pm, FamilyMan said:
Not anymore. If they lose business, the government will just give them more bailout money.
The crap sandwich 2.0 just gets better and better everyday. No amount of drinking tonight is going to wipe out the after taste of this thing.
ΜΟΛΩΝ ΛΑΒE (mo-lone lah-veh) Translation: Come and take them!
Wow! You might be on to something! Between that and a flat out boycott of the subsidized banks, we could actually strike back if we had some decent, well read and well spoken leaders.
Wow!
I don’t know what to say at this point. I ‘m looking for work and won’t take handouts….. but the largest money systems in the world have no such reservations. i have to keep paying my mortgage and such… I’m beyond angry.
Yeah, like “examination by not only the SEC, but several other branches of the government” worked wonders for Fannie, Freddie, Bear-Stearns, Wachovia, and the myriad other financial institutions that have pissed away billions over the last few years, didn’t it?
“Risks will be vastly diminished”? What, was Iowahawk writing this barbra streisand?
Having the SEC and other branches of the government be in charge of regulation and examination of financial institutions is the same as editors and fact checkers having oversight for news reporting done by Big Media.
It’s been proven by actual observation of the results. In both cases, “worthless as t!ts on a boar” would apply.
“Who’s next?”
Oooh, me, me, I’m next. Me. Me. I’ll even take on massive amounts of debt, play with Monopoly money, behave irresponsibly. I want my bailout.
One condition though: I want a resort spa retreat and a pedicure…
That, of course, would destroy your credit rating and be frowned upon by AMEX.
“What’s in your wallet?” Now, send it in so WE can have it!
I am not that smart, but what it means that’s important is that they can now go directly to the Federal Window to get cash.
Don’t forget that AMEX was fined $65 million in 2007 by FinCEN for having lax anti-moneylaundering controls.
AMEX had allowed $55 million in Columbian drug proceeds to be laundered thru its Miami-based private banking unit.
The fine came on the same day that AMEX announced Beyonce’ as their new spokescreecher.
AML controls are the same used to prevent terrorist funding. Nice.
Howzabout a nice MoneyGram with those Trav CHX, Mr Atta?
Hope the link works ‘I’m new’
I stopped using AMEX years ago.
I got tired of having a CC that few places would take.
Sorry, I can’t get the link right.
I decided never to do business with AMEX when they picked up Ellen as their spokes…..uh …person….thingy…
Ellen is harmless.
Nationalized banks (and debt) are not.
I said this a few weeks back. When you stand on the beach and feed one seagull, watch out, you better have plenty of food.
I feel like I’ve been dive-bombed, which is a nice way of saying I’ve been s@@t on.
My bad… just noticed I didnt provide the link
Link: Bank Holding Company
On November 10th, 2008 at 7:54 pm, PBoilermaker said:
Ellen is harmless.
I respectfully disagree.
If they can make you laught at it,
they can get you to accept it.
In every industry. The NY Times has no readers – it will be bailed out. Nothing of importance to liberals will go without.
No, “they” can’t. Slick marketing and pop culture won’t change my beliefs.
When they take my tax dollars and nationalize banks, however, that is
a different type of assault.
The joke’s on all you saps who saved, bought only what you could afford to pay for, and managed your finances responsibly. All those free-wheeling big spenders flaunting their “virtual” wealth have played you for suckers.
Sooooo…are you a “sap” or a “big spender”?
Do you know that they are also going to take away your 401(k) and/or IRA plan?
Here’s a link to the plan that Congressional committees have been reviewing: http://www.sharedprosperity.org/bp204/bp204.pdf
They want to take away the employer match, demand you invest only in government bonds, and pay you 3-5% interest. Because Social Security is failing, they’re coming after our nest eggs.
Here are some of my favorite quotes:
Gee… wasn’t “a basic retirement income” what the Social Security system was supposed to take care of?
I will let it go with this, but
Ellen’s not ‘harmless’
Too many reasons to list, but given her Prop 8 activism
and the recent over of People Mag featuring Ellen with her ‘wife’. She opened the door for this to become mainstream- there’s your harmless.
So, let’s review-
Gay is ok, just don’t take my 401K.
Got it.
Sapsucker
But definitely NOT the yellow-bellied variety
I dont know… 3-5% returns sound pretty good at the moment. Accept mediocrity and average isnt hard to attain.
I wonder if AMEX will require the Fed to send the payment within 30 days…
The title alone, Agenda for Shared Prosperity, makes me want to cash out ALL investments and bury the gold under the floor of a remote cabin. These bastards won’t be happy until they take every penny from us!
It is? Don’t misrepresent what I said.
Now who is it that really wonders why McCain and numerous other Republicans lost the elections last week…can’t get anymore left wing. McCain is nothing more than Bush only older with white hair…what joke. RNC wake up.
McCain doesn’t have the gonads to even speak up for Palin, what an a$$wipe, POW or not. he was a better POW than he’s been a Senator.
A real and appropriate punishment would be for Americans to cut up their
credit cards and pay off their debts.
Not that I expect to see it happen. Living off borrowed money is too strong an addiction. But how can we expect Uncle Sam to give it up if we can’t?
Well aren’t YOU in luck. I just happen to have a remote cabin right here! Dont worry, I’ll bury it for you and that way you dont have to get your hands dirty or anything. Diggin’s back breaking work ya know.
I think the government should send their application back with a checkmark in the poor credit box of the rejection letter.
And you’ll give him 3% for the privilege, right.
lol. If its a good day ~maybe~ even 5
No one fails in the new USA. Failure is not an option.
They must be worried that a certain campaign may not pay their bill.
American Express, Big Auto and Big Media next?
Production, Finance and Communication all in one pocket. “From each according to his ability, to each according to his needs” but only during the Temporary Emergency like the phone tax.
No Anwar drilling, stem cell reversal, abortion clinics in every school, but only for the Temporary Emergency. Your government approved tire gauge will solve all energy problems.
William Ayres only plans on killing 25 million of us anyway, what is the worry? Tis a Brave New World, huh? The sheeple have chosen. I thought President Bush and President Elect Obama were going to hold hands and sing “I want to buy the World a Coke” tonight. Damn him-Bush.
God Damn America, God Damn America, God Damn America-it’s in the Bible” anyone?
—
That every man be armed-you too ladies.
America First
America Alone
Americans Come Home
I just want someone to show me somewhere, anywhere in this world a society where the rich have just forked over vast percentages of their money with no complaint so the government can give it to the “poor” or “middle class” who then live glorious lives free of worries or cares.
America is eating herself alive!
If I were the fed I’d ask for discount terms for paying within 30 days…like maybe 90%….lol
Except if everybody gets the same rate, it won’t beat inflation. And it will be in government IOUs. There will be no guarantee that the money will actually be there when you need it.
Right now, the government would imprison any trustee that spent your retirement funds and told you they’d pay it back when you needed it.
Except themselves, that is.
I work at a bank.
Guys, don’t overreact. All this does is allow Amex to buy, sell or create bank branches. It’s not going to entitle them to any federal bailout money.
That money was stolen from the tax payers to pay for bad loans banks were forced to give to minorities and illegals who could not afford it to begin with.
I bet Amex is getting ready to enter the traditional banking business to lessen its risk in the credit market. I bet this process was long in motion before the bailout was even a sparkle in lib’s eyes.
They really must be serious about entering the retail or commerical side of banking. No one would subject themselves to both SEC, FFEIC, FDIC and IRS regulation unless they had a plan to become the next Bank of America.
AmEx has never really done well in the credit market, either.
OK, cool. Platinum is salvaged for now
Because I have done some serious damage to Exxon since I cut up their gas card ~20 years ago
I’m no expert, but I believe it means they can now take deposits from people like you and me. This is probably a sign that AMEX is having problems selling their corporate bonds at rates low enough to create a profitable spread between their credit issues (your credit card balance) and their own loans. The equity markets are hammered, so raising the money there would be severely dilutive to their total value.
My knowledge of the law is weak here, but I think AMEX could use depositor cash to capitalize their credit lines of business.
Making the leap from American Express obtaining a classification change to their lining up to take bail-out cash is a bit….
premature. The last word of my post was supposed to be PREMATURE!
Sorry. “total value” should be “share price” (or EPS).
Right_Wired: I was with you until I saw the following – AmEx Travel Related Services?
Holy Batman! Did I really just reference the NTTimes? (even a blind squirrel finds a nut every once in a while) hmmm, interesting comments (re: bailout) on the link
MarcoPolo,
We don’t have to worry about them destroying our 401K plans.. Here is why:
I like to use the cost of a 20oz Coca Cola as a benchmark.
When I was in the US last summer, a Coke cost $1.35 at the gas station down the street. My 401K promised a payout of about $3000 a month for the rest of my life if I retired at 62 (20 years from now).
Since then, Uncle Sugar has printed $700 Billion crispy new dollars with nothing but “faith” to back them. The majority of econ types I have spoken to agree that this will not be the end of the printing.
The manufacturing base in the USA, decimated by Clinton, is being given the coup de grace by the Bailout (both parties to blame). With the advance of a Socialist administration and Congress working in concert, the killing sword will be twisted enough to do mortal damage.. You know, for the good of the collective.
All of this adds up to only one thing: Inflation. Hyper, Hyper, Hyper Inflation. Slice off the zeros and call it the “New” Dollar. Just like Mexico – Boy, those guys are kicking some financial butt – aren’t they!
The result of all of this is that the $3000 a month annuity I will receive will actually only be worth $800 a month in the value of today’s money because that benchmark bottle of Coke will be $9.25 (or 93 cents of the Dollar Nuevo).
So let them tax the 401K’s. They will be worthless anyway.
THAT, my friends is how this economic crisis (i.e. malfeasance) truly effects those of us not in the financial industry.
I see a lot of businesses being “nationalized” in this country, in the next few years. Once the government gets into the door, it will never leave. Such tactics failed miserably before (early 30s for example) and they will fail again. Between, “spreading the wealth” and bailouts, there won’t be much of a U.S., left in 2012. I see a lot of people already “lining up” for their “fair share” of the pie, not even thinking of the economic disasters it will cause, making it even worse for their own wallets than before.
Yes… the Dems will make the NY Times the Pravda of the USA. Everyone will get a daily copy, courtesy of our tax dollars.
Call it Fairness Doctrine 2.0
Wait a minute… why don’t they use their American Express Card to pay off any debt? All they have to do is pay it in full on the next billing statement JUST LIKE I HAVE TO DO.
Hope this destroys their “credit rating”.
There are now nearly 40 companies receiving or requesting taxpayer bail-outs. I am reminded of Lincoln’s description of all the requests for government money in his time – “There are too many piglets for the tits.”
chsw
Michelle’s wrong. Doesn’t she know that Sarbanes-Oxley has stopped all of these kinds of things? We’ve spent billions making sure that there is complete transparency in everything we do. Thus, companies can’t do stupid things with their money anymore. It’s illegal.
Sheesh…
how about we all just start writing our congressional critters and start demanding that we get a bailout as well…gee there senator, I did the best I could but you know I mismanaged my money and gee I need a helping hand…oh I promise I won’t take any junkets to exotic locations on the taxpayers money like AIG…honest I won’t….
NOW, it’s not premature:
AMEX
You beat me to the update!
Yep, Looks like the Platinum card is going to be gone. They recently stopped offering Companion Airline tickets, which is one of the main perks I got it for.