What’s the benefit of becoming a bank holding company?

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What’s the benefit of becoming a bank holding company?

November 11, 2008 – 12:10 pm – No Comment

The U.S. Federal Reserve said American Express could become a bank holding company. Like Morgan Stanley and Goldman Sachs before, now American Express may issue government guaranteed bonds through June 2012.

The companies can also apply to receive aid from the $700 billion bailout rescue package Troubled Assets Relief Program.

American Express dug itself into the hole it is currently in. After all, last year when the housing market started to go belly-up, AmEx was still giving out credit like candy on Halloween. Trick or treat?

I can’t believe some credit card companies. I am STILL getting pre-approved offers in the mail. Some of the companies are ones that I’ve read about having trouble…should they really be wasting assets to pre-approve me for a credit card, especially if I haven’t responded to the last 200 mailings?