AmEx Cleared to Become Commercial Bank

The Fed has given credit card giant American Express the all-clear to become a bank holding company in a bid to keep the financial crisis wolves from the door, Marketwatch reports. AmEx can now accept deposits and access the Fed's emergency lending facilities. The central bank waived the normal 30-day waiting period, citing the "unusual and exigent circumstances affecting the financial markets.” 

The surprise move by American Express follows the announcement last month that it's laying off 10% of its workforce after a 24% plunge in third-quarter profits. The change in status brings American Express much needed relief but also opens it up to much tighter scrutiny from the Fed, and analysts believe it indicates that the firm is in far more trouble than it has let on. The company currently operates a small bank and a savings and loan, which have $50 billion in assets (More American Express stories.)