AMEX Seeks 3.5 Billion Dollar Bailout
by John Little on 12/11/2008One of this nice things about becoming a bank holding company, at least in this current environment, is that you can loot the taxpayer:
American Express (AXP) might have been feeling left out of the government’s $700 billion financial bailout package. But now, as the company’s consumer credit quality deteriorates faster than rivals while the economy falls into recession, it can get help from Uncle Sam.
On Nov. 10, the Federal Reserve approved American Express’ application to become a bank holding company. Until now, AmEx couldn’t use the same tools as its rival credit-card companies to raise cash. Under the government’s bailout plan, banks regulated by the Federal Reserve could rely on cheap funding from the Fed and from other efforts by the government to prop up the banking system. Also, these banks can compete for deposits from bank customers, another relatively cheap form of funding.
Mitchell Langbert wants a boycott. I suspect that he’s not alone:
I take it personally that my taxes are being raised to subsidize bozos at badly managed firms. I think that all Americans should just say no to any firm that receives a subsidy. The American car companies have been indifferent to the plight of their employees for decades. Now, they claim public subsidies. Investment bankers have been overpaid for decades. Now, they want average earners to subsidize their inept practices.
Boycott American Express. Boycott General Motors. Boycott the lot of them.
What about you?
Related posts:
Bush Bailout: Nearly 14 Billion Made Avialable to Automakers Immediately
I wonder how much good will GM and Chrysler are burning these days? They’ve almost criminally mismanaged their companies and now they’re going to dip into our pockets to cover...
China Threatens To Undermine US Dollar
The sad fact of the matter is that China owns us. Today, they issued a reminder: The Chinese government has begun a concerted campaign of economic threats against the United...
Japan Freezes $10 Billion in Iranian Loans
Iran finally takes a hit for their belligerence: Japan, the world’s second-largest oil importer after the U.S., halted its $10 billion financing of projects in Iran until the country complies...
Don Imus and CBS in $20 Million Dollar Settlement
Matt Drudge has the scoop: **Exclusive** Radio host Don Imus has agreed to settle with CBS for $20 million, and a non disparaging clause, legal sources claim. The move opens...
Pentagon Will Reopen – Manage $35 Billion Air Force Tanker Contract Bid
Pentagon officials do not seem to have much confidence in Air Force leadership these days: Boeing Co. and Northrop Grumman Corp. will submit new offers for a disputed $35 billion...
There is 1 comment in this article: