AMEX close to bankruptcy

[allistar]

Or, just don't do business with the large, multi-national banks and credit institutions. There are plenty of small, local banks and financial institutions that appreciate your business and you can deal with people rather than persons on the other end of a phone.

[jon46]

Due to the economy, most credit card companies have higher than average credit losses.

 

Because of what happened to Lehman Brothers and the resultant finance/credit crisis, credit has seized up, including commercial paper market. American Express was impacted because it uses the commercial paper market for funds!

 

Accordingly, American Express became a bank holding company to get access to funds from the US government!

[expat]

Or, just don't do business with the large, multi-national banks and credit institutions. There are plenty of small, local banks and financial institutions that appreciate your business and you can deal with people rather than persons on the other end of a phone.

 

I had my small banks swallowed up by large banks three times--eventually I gave up and just left my money in the large bank.

 

[redwood13]

Friday 23 Jan. 2009

"1st Centennial Bank, Redlands, California, was closed today by the California Department of Financial Institutions, which then appointed the Federal Deposit Insurance Corporation (FDIC) as receiver. To protect the depositors, the FDIC entered into a purchase and assumption agreement with First California Bank, Westlake Village, California, to assume the insured deposits of 1st Centennial.

...

As of January 9, 2009, 1st Centennial had total assets of $803.3 million and total deposits of $676.9 million, of which there were approximately $12.8 million that exceeded the insurance limits. ..."

FDIC Press Release

 

-redwood