Fed & FDIC Cast Doubt on American Express Resolution Plan
Regulators at the Federal Reserve and FDIC have raised concerns about American Express' (no ticker mentioned) proposed resolution plan, citing 'significant uncertainty' regarding its feasibility.
The plan, which was submitted by the company as part of its living wills, envisions a single buyer purchasing the assets of American Express National Bank, Travel Related Services, and American Express Co. in order to keep its integrated payments platform intact.
However, regulators have expressed doubt about whether this strategy can work due to the operational complexity involved in coordinating a sale between the FDIC and bankruptcy court proceedings.
The agencies have advised American Express to revisit its preferred resolution strategy for its next submission, which is due in July 2028.