American Express Gets Fed Approval to Convert to Bank

"The Fed waived the normal 30-day waiting period on the application ``in light of the unusual and exigent circumstances affecting the financial markets,'' the central bank said in a statement in Washington.

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Sales of credit card asset-backed bonds have plummeted, hindering the company's ability to raise cash to fund new loans. The Fed lets banks post consumer debt, such as credit card receivables, as collateral for loans from its discount window, which carry a 1.25 percent interest rate.

American Express [is] the largest U.S. credit-card company by purchases . . . ."