American Express Not So Friendly With American Bailout Money
by Bill Smith at ARRA News Service
The Religious Freedom Coalition reported that in November, 2008, just days after receiving billions of our tax dollars for a bail-out, American Express canceled credit lines of all their small business customers, making it impossible to buy inventory for Christmas and causing layoffs. At the same time American Express canceled the credit lines of non-profit organizations, including nonprofits like the Religious Freedom Coalition.
Today, Standard & Poor’s cut its rating on American Express Co by one notch due to increasing financial pressure on consumer lenders, the rating company said. S&P cut its ratings for American Express by one step to “A,” or five steps above junk, from “A-plus.” The outlook is negative, suggesting more cuts may come.
American Express states its Corporate Responsibiliy as follows:
And this is exactly what concerns us about all of these bailouts. The government’s intention and the companies’ intentions for the money don’t coincide.
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