American express gets $4.9bn cash injection
From correspondents in Washington
Agence France-Presse
December 24, 2008 09:15am
CREDIT card giant American Express has revealed it is to receive $3.4 billion ($4.9 billion) in capital injection from the US Treasury as part of an emergency rescue for the troubled financial sector
American Express said the Treasury had provided preliminary approval for it to participate in the Treasury's $700 billion Troubled Asset Relief Program Capital Purchase Program.
"American Express expects to issue and sell to the Treasury preferred stock of approximately $3.4 billion and warrants to purchase shares of common stock for up to 15 per cent of that amount,'' the company said.
The preferred shares will pay dividends at a rate of five percent annually for the first five years and then 9 per cent annually thereafter, a company statement said.
The United States Federal Reserve approved the company's application to become a bank holding company last month.
American express gets $4.9bn cash injection | Business Breaking News | News.com.au
From correspondents in Washington
Agence France-Presse
December 24, 2008 09:15am
CREDIT card giant American Express has revealed it is to receive $3.4 billion ($4.9 billion) in capital injection from the US Treasury as part of an emergency rescue for the troubled financial sector
American Express said the Treasury had provided preliminary approval for it to participate in the Treasury's $700 billion Troubled Asset Relief Program Capital Purchase Program.
"American Express expects to issue and sell to the Treasury preferred stock of approximately $3.4 billion and warrants to purchase shares of common stock for up to 15 per cent of that amount,'' the company said.
The preferred shares will pay dividends at a rate of five percent annually for the first five years and then 9 per cent annually thereafter, a company statement said.
The United States Federal Reserve approved the company's application to become a bank holding company last month.
American express gets $4.9bn cash injection | Business Breaking News | News.com.au