AMERICAN EXPRESS - Bank Holding Company

Federal Reserve has given American Express the right to function as a bank holding company. To me it was a long wait. I remember when I was in Canada (from 18 August 1987 to 28 May 1989 AND from August 21st 1989 to 13 October 1990) University of Saskatchewan students always receive a pre approved AMEX application form in The Sheaf(University of Saskatchewan newsletter). But I never ever fill in that AMEX form. Maybe then AMEX was just a charge card and I am not a Canadian.

I also wonder why a corporation like American Express never really a Bank. In Malaysia we have a company MBF which issue Visa and Master Cards but MBF is not a bank.Since the abolition of Glass Steagall Act 1933 and the formation of IBBEA 1994 and GLBA 1999 we know American banks were very much deregulated. Is deregulation of banks the culprit to the existing American credit crisis beside the securitization of mortgages? We know AMEX would not give out mortgages per se. My guess is that Bush Administration require a boost in Christmas shoppings thereby make the US economy move again. But everybody knows Christmas 2008 will not be a good festive season.My only HOPE is American Express would NOT turn to Chapter 11 that very soon.