AmEx Said to Request $3.5 Billion in U.S. Aid

American Express Co. is the latest company to seek U.S. government help to steer it through the financial crisis, according to a story Wednesday in The Wall Street Journal.

The Journal reported that AmEx is asking for $3.5 billion in taxpayer-funded capital. The paper quoted people familiar with the situation. There has been no official comment from AmEx.

The application has been made under the government’s Troubled Asset Relief Program (TARP), though the Journal said it isn’t clear if the request was made before or after AmEx received Federal Reserve approval on Monday to become a bank-holding company.

By becoming a holding company, AmEx made itself eligible to access the Federal Reserve’s emergency-lending facilities — but it will now also be subject to greater regulatory oversight.

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The request comes as AmEx struggles with slowing consumer spending — even among its most affluent customers — and rising defaults. This hits AmEx particularly hard because its business model revolves around consumers using their credit cards.

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In early October, AmEx said that its quarterly net income fell 24% as it set aside more money to cover bad loans.

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