The US central bank said that both American Express Company and its affiliate American Express Travel Related Services would be allowed to form bank holding companies, as the Amex group converts its Salt Lake City, Utah-based American Express Centurion Bank into a full bank.

'In light of the unusual and exigent circumstances affecting the financial markets, and all other facts and circumstances, the (Federal Reserve) Board has determined that emergency conditions exist that justify expeditious action on this proposal,' the Fed said in a statement. -- AFP