American Express joins Goldman Sachs and Morgan Stanley

American Express Co. has became a commercial bank with the approval of the Federal Reserve and gained access funds to as sales of asset-backed bonds tumbled and credit losses grew.

Due to the financial crisis the Federal Reserve waived a 30-day waiting time on the application, Ben S. Bernanke, Chairman along with all his colleagues voted for the move unanimously according to a statement.

The move came as American Express credit-holders were not able to repay loans at almost twice the rate from the previous year, that added to the fact of rising unemployment all added to a bad Third quarter.

American Express now joins Morgan Stanley and Goldman Sachs Group Inc the two investment banks who both gained approval from the federal government to become Commercial Banks back in September.

Stocks in American Express the US largest credit card company by purchases tumbled 5.3 percent or $1.33 to $23.98 yesterday, over this year it share value has tumbled 54 percent, making American Express the fourth biggest loser on the Dow Jones Industrial Average.

Source: Bloomberg