|Type||Public (NYSE: AXP)|
John Warren Butterfield
|Headquarters||New York City, New York, United States|
|Key people||Kenneth Chenault
(Chairman & CEO)
|Industry||Finance, insurance, and travel agencies|
|Products||Financial and travel services|
|Revenue||▲ US$ 31.92 billion (2008)|
|Operating income||▼ US$ 6.68 billion (2008)|
|Net income||▼ US$2.69 billion (2008)|
|Total assets||▼ US$126.07 billion (2008)|
|Total equity||▲ US$11.84 billion (2008)|
American Express Company (NYSE: AXP), sometimes known as "AmEx" or "Amex", is a diversified global financial services company that is headquartered in New York City. Founded in 1850, it is one of the 30 components of the Dow Jones Industrial Average. The company is best known for its credit card, charge card, and traveler's cheque businesses. Amex cards account for approximately 24% of the total dollar volume of credit card transactions in the US, the highest of any card issuer.
BusinessWeek and Interbrand ranked American Express as the 22nd most valuable brand in the world, estimating the brand to be worth US$14.97 billion. Fortune listed Amex as one of the top 30 Most Admired Companies in the World. The New York Times reports it has a 91% Satisfaction rank.
American Express was started as an express mail business in Albany, New York, in 1850. It was founded as a joint stock corporation by the merger of the express companies owned by Henry Wells (Wells & Company), William Fargo (Livingston, Fargo & Company), and John Warren Butterfield (Wells, Butterfield & Company, the successor earlier in 1850 of Butterfield, Wasson & Company). The same founders also started Wells Fargo & Co. in 1852 when Butterfield and other directors objected to the proposal that American Express extend its operations to distant California.
American Express first established its headquarters in a building at the intersection of Jay Street and Hudson Street in what was later called the TriBeCa section of Manhattan. For years it enjoyed a virtual monopoly on the movement of express shipments (goods, securities, currency, etc.) throughout New York State. In 1874, American Express moved its headquarters to 65 Broadway in what was becoming the Financial District of Manhattan, a location it was to retain through two buildings.
In 1854, the American Express Co. purchased a lot on Vesey Street in New York City as the site for its stables. The company's first New York headquarters were in an impressive marble Italianate palazzo at 55-61 Hudson Street between Thomas Street and Jay Street (1857–58, John Warren Ritch), which had a busy freight depot on the ground story with a spur line from the Hudson River Railroad. A stable was constructed nearby at 4-8 Hubert Street, between Hudson Street and Collister Street (1866–67, Ritch & Griffiths), five blocks north of the Hudson Street building.
The company prospered sufficiently that headquarters were moved in 1874 from the wholesale shipping district to the budding Financial District, and into rented offices in two five-story brownstone commercial buildings at 63 and 65 Broadway, between Exchange Alley and Rector Street, and between Broadway and Trinity Place that were owned by the Harmony family.
In 1880, American Express built a new warehouse behind the Broadway Building at 46 Trinity Place, between Exchange Alley and Rector Street. The designer is unknown, but it has a façade of brick arches that are redolent of pre-skyscraper New York. American Express has long been out of this building, but it still bears a terracotta seal with the American Express Eagle. In 1890-91 the company constructed a new ten-story building by Edward H. Kendall on the site of its former headquarters on Hudson Street.
By 1903, the company had assets of some $28 million, second only to the National City Bank of New York among financial institutions in the city. To reflect this, the company purchased the Broadway buildings and site.
At the end of the Wells-Fargo reign in 1914, an aggressive new president, George Chadbourne Taylor (1868-1923), who had worked his way up through the company over the previous thirty years, decided to build a new headquarters. The old buildings, dubbed by the New York Times as "among the ancient landmarks" of lower Broadway, were inadequate for such a rapidly expanding concern. In March 1914, Renwick, Aspinwall & Tucker filed for the construction of a 32-story concrete-and steel-framed office tower in which all of the company's operations, then in four separate buildings, were to be consolidated. The building proposal of 1914 was abandoned, probably due to the war in Europe, but was resurrected two years later in a reduced form, at an estimated cost of $1 million.
The 21-story (plus basement), neo-classical, American Express Co. Building, was constructed in 1916-17 to the design of James L. Aspinwall, of the firm of Renwick, Aspinwall & Tucker, the successor to the architectural practice of the eminent James Renwick, Jr.. The building consolidated the two lots of the former buildings with a single address: 65 Broadway. This building was part of the "Express Row" section of lower Broadway at the time. The concrete-and-steel-framed building has an H-shaped plan with tall slender wings arranged around central light courts, a type of plan employed from the 1880s through the 1910s to provide offices with maximum light and air. Faced in white brick and terra cotta above a granite base, both facades employ the tripartite composition of base-shaft-capital then popular for the articulation of skyscrapers, with a colonnaded base and upper portion. The famous American Express Eagle adorns the building twice: there is an asymmetric eagle on the lower arch, while a symmetric eagle adorns the arch atop the building. The Broadway entrance features a double-story Corinthian colonnade with large arched windows. The building completed the continuous masonry wall of its block-front poda nae and assisted in transforming Broadway into the "canyon" of neo-classical masonry office towers familiar to this day
American Express sold this building in 1975, but retained travel services here. The building was also the headquarters over the years of other prominent firms, including investment bankers J.& W. Seligman & Co. (1940-74), the American Bureau of Shipping, a maritime concern (1977-86), and currently J.J. Kenny, and Standard & Poor's, who has renamed the building for itself
American Express extended its reach nationwide by arranging affiliations with other express companies (including Wells Fargo – the replacement for the two former companies that merged to form American Express), railroads, and steamship companies.
Sometime between 1888 and 1890, J. C. Fargo took a trip to Europe and returned frustrated and infuriated. Despite the fact that he was president of American Express and that he carried with him traditional letters of credit, he found it difficult to obtain cash anywhere except in major cities. Fargo went to Marcellus Flemming Berry and asked him to create a better solution than the traditional letter of credit. Berry introduced the American Express Traveler's Cheque which was launched in 1891 in denominations of $10, $20, $50, and $100.
Traveler's cheques established American Express as a truly international company. In 1914, at the outbreak of World War I, American Express offices in Europe were among the few companies to honor the letters of credit (issued by various banks) held by Americans in Europe, despite other financial institutions having refused to assist these stranded travelers.
American Express became one of the monopolies that President Theodore Roosevelt had the Interstate Commerce Commission investigate during his administration. The interest of the ICC was drawn to its strict control of the railroad express business. However, the solution did not come immediately to hand. The solution to this problem came as a coincidence to other problems during World War I.
During the winter of 1917, the US suffered a severe coal shortage and on December 26 President Woodrow Wilson commandeered the railroads on behalf of the US government to move US troops, their supplies, and coal. Treasury Secretary William Gibbs McAdoo was assigned the task of consolidating the railway lines for the war effort. All contracts between express companies and railroads were nullified and McAdoo proposed that all existing express companies be consolidated into a single company to serve the country's needs. This ended American Express's express business, and removed them from the ICC’s radar. The result was a new company called the American Railway Express Agency company formed in July 1918. The new entity took custody of all the pooled equipment and property of existing express companies (the largest share of which, 40%, came from American Express, who had owned the rights to the express business over 71,280 miles (114,710 km) of railroad lines, and had 10,000 offices, with over 30,000 employees).
Current CEO Kenneth Chenault took over leadership of American Express in 2001 from Harvey Golub, CEO from 1993 to 2001. Prior to that, the company was headed by James D. Robinson III from 1977 to 1993.
American Express executives discussed the possibility of launching a travel charge card as early as 1946, but it was not until Diners Club launched their card in March 1950 that American Express began to seriously consider the possibility. At the end of 1957, American Express CEO Ralph Reed decided to get into the card business, and by the launch date of October 1, 1958 public interest had become so significant that they issued 250,000 cards prior to the official launch date. The card was launched with an annual fee of $6, $1 higher than Diners Club, to be seen as a premium product. The first cards were paper, with the account number and cardmember's name typed. It was not until 1959 that American Express began issuing embossed ISO/IEC 7810 plastic cards, an industry first.
In 1966, American Express introduced the Gold Card and in 1984 the Platinum Card, clearly defining different market segments within its own business, a practice that has proliferated across a broad array of industries. The Platinum Card was billed as super-exclusive and had a $250 annual fee (it is currently $450). It was offered by invitation only to American Express customers with at least 2 years of tenure, significant spending, and excellent payment history.
In 1987, American Express introduced the Optima card, their first credit card product. Previously, all American Express cards had to be paid in full each month, but Optima allowed customers to carry a balance (the charge cards also now allow extended payment options on qualifying charges based on credit availability). Although American Express no longer accepts applications for the Optima brand of cards, since July 13, 2009, Optima cards are still listed on the American Express website, as a reference to existing members only. According to American Express, Optima accounts were not converted or closed. However, Blue from American Express has prevailed as the replacement for the original Optima style of credit card. Blue includes multiple benefits free of charge, unlike Optima, including the Membership Rewards program.
In April 1992, American Express spun off its subsidiary, First Data Corp., in an IPO. Then, in October 1996, the company distributed the remaining majority of its holdings in First Data Corp., reducing its ownership to less than 5%.
In 1994, the Optima True Grace card was introduced. The card was unique in that it offered a grace period on all purchases whether a balance was carried on the card or not (as opposed to traditional revolving credit cards which charge interest on new purchases if so much as $1 was carried over). The card was discontinued a few years later; the now discontinued One from American Express card offered a similar feature called "Interest Protection."
From early 1980s until the early 1990s, American Express was known for cutting its merchant fees (also known as a "discount rate") to merchants and restaurants if they accepted only American Express and no other credit or charge cards. This prompted competitors such as Visa and MasterCard to cry foul for a while as the tactics "locked" restaurants into American Express.
However, in 1991, several restaurants in Boston started accepting and encouraging the use of Visa and MasterCard because of their far lower fees as compared to American Express' fees at the time (which were about 4% for each transaction versus around 1.2% at the time for Visa and MasterCard). A few even stopped accepting American Express credit and charge cards. The revolt, known as the "Boston Fee Party" in reference to the Boston Tea Party, quickly spread nationwide to over 250 restaurants across the United States, including restaurants in other cities such as New York City, Chicago, and Los Angeles. In response, American Express decided to reduce its discount rate gradually to compete more effectively and add new merchants to its network such as supermarkets and drugstores. Many elements of the exclusive acceptance program were also phased out so American Express could effectively encourage businesses to add American Express cards to their existing list of payment options.
Currently, American Express' average US merchant rate is about 2.5%, while the average Discover, Mastercard, and Visa U.S. merchant rate is about 2% (Visa/MasterCard signature debit cards are at 1.7%). Some merchant sectors, such as quick-service restaurants including McDonald's, have special reduced rates to accommodate business needs and profit margins.
Many retail outlets today either refuse to offer American Express facilities or charge clients extra because of the high charges they face when offering this service.
American Express formed a joint venture with Warner Communications in 1979 called Warner-Amex Satellite Entertainment, which created MTV, Nickelodeon and The Movie Channel. The partnership only lasted until 1984. The properties were sold to Viacom soon after.
On November 10, 2008, during the financial crisis of 2008, the company won Federal Reserve System approval to convert to a bank holding company, making it eligible for government help under the Troubled Asset Relief Program. At that time, American Express had total consolidated assets of about $127 billion. In June 2009, $3.39 billion in TARP funds were repaid plus $74.4 million in dividend payments, and in July 2009 they ended their obligations under TARP by buying back $340 million in Treasury warrants.
When a consumer makes a purchase using a credit or charge card, a small portion of the price is paid as a fee (known as the merchant discount), with the merchant keeping the remainder. There are typically three parties who split this fee amongst themselves:
Most Prime and Superprime card issuers use the majority of their interchange revenue to fund loyalty programs like frequent flyer points and cash back, and hence their profit from card spending is small relative to the interest they earn from card lending.
American Express typically plays the role of all three parties above, keeping the entire merchant discount. In recent years Amex has begun authorizing other banks to either acquire or issue on Amex's behalf, primarily in countries where Amex would otherwise have little or no presence.
Amex also has historically charged a higher merchant discount than Visa or MasterCard. The size of the premium can differ significantly: in the US, Amex charges 66 basis points more (2.56% vs 1.9%) than rivals Visa and MasterCard, while in Australia Amex charges more than twice as much as Visa or MasterCard due to Australian interchange regulations.
Amex uses this higher discount revenue to invest in rewards programs which provide a higher payout than competing programs. These more substantial rewards programs, in addition to a premium brand and a reputation for superior customer service, allows Amex to attract a disproportionate share of affluent consumers. Amex then uses its strength with affluent consumers to justify charging a higher merchant discount rate, implying that if a merchant does not accept Amex cards he will lose affluent customers. This business model creates a self-reinforcing loop.
Due to what Amex calls its "spend-centric strategy", card spending and fees are responsible for 70% of Amex's card profit, vs. 10-40% for other issuers. Amex also tends to make more money from annual fees than other issuers do.
One tension in Amex's business model is acceptance, a volume vs. margin trade-off. Because Amex charges a higher merchant discount fee, it is not as widely accepted as Visa or MasterCard. Amex's business model depends on having a higher discount fee, however, making it difficult to lower it. The company has to strike a balance, keeping its fee low enough to attract sufficient merchants, but high enough to fund rich rewards and drive its business model. In countries where Amex charges a small premium, like the US, it has near-parity acceptance, but its card rewards are not significantly more substantial than those of its competitors. In countries where it charges a large premium, its cards often have a much higher rewards payout than competing cards.
Many banks fund their lending, both card and otherwise, through deposits. Without deposits, however, Amex has historically funded its lending through outstanding travelers cheques (which function like non-interest-bearing deposits), the wholesale funding markets, and securitization. As travelers cheques have declined in popularity since the rise of ATMs, Amex has begun seeking traditional deposits through online high-yield savings accounts. The freeze in wholesale funding markets and securitization during the financial crisis of 2007–2010 caused Amex to accelerate these deposit-raising efforts, and also caused them to decrease growth in lending.
Due to its focus on affluent customers, Amex has historically had lower levels of credit losses than other issuers. The gap has almost disappeared for Q3'08 to Q1'09, however, as card issuers of all types experienced heightened credit losses.
American Express is best known for its iconic Green, Gold, and Platinum charge cards, and offers credit cards of similar color levels in most countries.
In 1999, American Express introduced the Centurion Card, often referred to as the "black card," catering to an even more affluent and elite customer segment. The card initially charged a $1000 annual fee at the time of its introduction (today, it is $2500 with an additional one-time initiation fee of $5,000). The Centurion product offers a variety of exclusive benefits. There have always been rumors of a super-exclusive card that gives American Express' richest and most powerful customers special perks. It was this rumor that caused Amex to profit from the word-of-mouth and sparked the launch of Centurion.
As of 2005, the US Centurion card has a $2,500 annual fee, while other American Express cards range between no annual fee (for Blue and many other consumer and business cards) and a $450 annual fee (for the Platinum Card). Annual fees for the Green card start at $55 (without Membership Rewards), while Gold card annual fees start at $150.
American Express has several co-branded credit cards, with most falling into one of two categories:
Their card aimed at young adults is called Blue from American Express. A television media campaign for Blue adopted the 1979 UK Synthpop hit "Cars" by Gary Numan as its theme song. Based on a successful product for the European market, Blue had no annual fee, a rewards program, and a multi-functional onboard chip. A cashback version, "Blue Cash", quickly followed. Amex also targeted young adults with City Reward Cards that earn INSIDE Rewards points to eat, drink, and play at New York, Chicago and LA hot spots. American Express began phasing out the INSIDE cards in mid-2008, with no new applications being taken as of July 2008.
In 2005, American Express introduced ExpressPay, similar to MasterCard PayPass, based on a wireless RFID payment method, that requires a card to simply be waved in front of a special reader and not swiped. This technology replaced the smart chip on the Blue card. Many U.S. merchant and restaurant partners including 7-Eleven, CVS/pharmacy, McDonald's, Regal Entertainment Group, and Ritz Camera Centers, now offer ExpressPay at most or all of their locations.
In 2005, American Express introduced Clear, advertised as the first credit card with no fees of any kind. Also in 2005, American Express introduced One, a credit card with a "Savings Accelerator Plan" that contributes 1% of eligible purchases into an FDIC-insured High-Yield Savings Account. Other cards introduced in 2005 included "The Knot" and "The Nest" Credit Cards from American Express, co-branded cards developed with the wedding planning website theknot.com.
In 2006, the UK division of American Express joined the Product Red coalition and began to issue a Red Card. With each card member purchase the company contributes to good causes through The Global Fund to Fight AIDS, Tuberculosis and Malaria to help African women and children suffering from HIV/AIDS, malaria, and other diseases.
American Express offers various types of charge cards for small businesses to manage their expenses, and the company is also the largest provider of corporate cards.
In late 2007, the company announced the new Plum Card as the latest addition to their card line for small business owners. The card provides a 1.5% early pay discount or up to two months to defer payment on purchases. The 1.5% discount is available for billing periods where the cardmember spends at least $5,000. The first 10,000 cards were issued to members on December 16, 2007.
In 2008, American Express made a decision to close all Business Line of Credit accounts. This decision was reached in tandem with the Federal Reserve's approval of American Express's request to become a Commercial Bank.
In December 2000, American Express agreed to acquire the credit card portfolio of Bank of Hawaii, then a division of Pacific Century Financial Corp. In January 2006, American Express sold its Bank of Hawaii card portfolio to Bank of America (MBNA). Bank of America will issue Visa and American Express cards under the Bank of Hawaii name.
Until 2004, Visa and MasterCard rules prohibited issuers of their cards from issuing American Express cards in the United States. This meant, as a practical matter, that U.S. banks could not issue American Express cards. These rules were struck down as a result of antitrust litigation brought by the U.S. Department of Justice, and are no longer in effect. In January 2004, American Express reached a deal to have its cards issued by a U.S. bank, MBNA America. Initially decried by MasterCard executives as nothing but an "experiment", these cards were released in October 2004. Some said that the relationship was going to be threatened by MBNA's merger with Bank of America, a major Visa issuer and original developer of Visa. However, an agreement was reached between American Express and Bank of America on December 21, 2005. Under the terms of the agreement, Bank of America will own the customer loans and American Express will process the transactions. Also, American Express will dismiss Bank of America from its antitrust litigation against Visa, MasterCard, and a number of U.S. banks. Finally, both Bank of America and American Express also said an existing card-issuing partnership between MBNA and American Express will continue after the Bank of America-MBNA merger. The first card from the partnership, the no-annual-fee Bank of America Rewards American Express card, was released on June 30, 2006.
Since then, Citibank, GE Money, and USAA have also started issuing American Express cards. Citibank currently issues several American Express cards including an American Airlines AAdvantage co-branded card. In early 2006  Amex issued Dillard's American Express card in joint cooperation with GE Money, however, in Mar 2008 GE sold its card unit to Amex for $1.1B in cash only deal. HSBC Bank USA is currently testing both HSBC-branded and Neiman Marcus co-branded American Express rewards credit cards, with a full rollout scheduled for late 2007 or early 2008. Also, UBS launched its Resource Card program for US Wealth Management clients issuing Visa Signature credit cards and American Express charge cards linked to their customers accounts and employing a single rewards program for the two cards.
Amex is the largest provider of traveler's cheques in the world.
In 2005, American Express released the American Express Travelers Cheque Card, a stored-value card that serves the same purposes as a traveler's cheque, but can be used in stores like a credit card. The card has since been discontinued as of October 31, 2007, due to "changing market conditions". All cardholders were issued refund checks for the remaining balances.
During the 1980s, American Express embarked on its dream to become a financial services supercompany. In mid-1981 it purchased Sanford I. Weill's Shearson Loeb Rhoades, the second largest securities firm in the United States to form Shearson/American Express. Shearson Loeb Rhoades, itself was the culmination of several mergers in the 1970s as Weill's Hayden, Stone & Co. merged with Shearson, Hammill & Co. in 1974 to form Shearson Hayden Stone. Shearson Hayden Stone then merged with Loeb, Rhoades, Hornblower & Co. (formerly Loeb, Rhoades & Co. to form Shearson Loeb Rhoades in 1979. With capital totalling $250 million at the time of its acquisition, Shearson Loeb Rhoades trailed only Merrill Lynch as the securities brokerage industry's largest firm. After its acquisition by American Express, the firm was renamed Shearson/American Express.
In 1984 Shearson/American Express purchased the 90-year old Investors Diversified Services, bringing with it a fleet of financial advisors and investment products. Also in 1984, American Express acquired the investment banking and trading firm, Lehman Brothers Kuhn Loeb, and added it to the Shearson family, creating Shearson Lehman/American Express. In 1988, the Firm acquired E. F. Hutton & Co., forming Shearson Lehman Hutton until 1990, when the Firm's name became Shearson Lehman Brothers. When Harvey Golub took the reins in 1993 he negotiated the sale of Shearson's retail brokerage and asset management business to Primerica and in following year, spun-off of the remaining investment banking and institutional businesses as Lehman Brothers Holdings Inc.
On 30 September 2005, American Express spun off its American Express Financial Advisors unit as a publicly traded company, Ameriprise Financial, Inc.. Due to this, American Express revenues for 2005 are down around $5 billion, however, like-for-like they are up 10.5% in 2005. Also, on September 30, 2005, RSM McGladrey acquired American Express Tax & Business Services (TBS).
On 18 September 2007, it was announced that Standard Chartered Bank agreed to acquire American Express Bank Ltd, a commercial bank, from American Express Co, for an estimated $1.1 billion, through a friendly divestiture process. The transaction is currently subject to regulatory approvals. Lehman Brothers had advised American Express in this deal.
American Express established a Travel Division in 1915 that tied together all of the earlier efforts at making travel easier, and soon established its first travel agencies.Today the focus is on business customers and business travel.
In 1975, David Ogilvy of Ogilvy & Mather developed the highly successful Don't Leave Home Without Them ad campaign for American Express Traveler's Cheques, featuring Oscar-award-winning actor Karl Malden. Karl Malden served as the public face of American Express Travelers Cheques for 25 years. In the UK the spokesman was instead the television personality Alan Whicker.
After Karl Malden's departure and as the card was promoted over the traveller's cheques, American Express continued to use celebrities, such as Mel Blanc. A typical ad for the American Express Card began with a celebrity asking viewers: "Do you know me?" Although he/she gave hints to his/her identity, the star's name was never mentioned except as imprinted on an American Express Card; after which announcer Peter Thomas told viewers how to apply for it. Each ad concluded with the celebrity reminding viewers: "Don't Leave Home Without It." The "Don't Leave Home Without It" slogan was revived in 2005 for the prepaid American Express Travelers Cheque Card.
These slogans have been parodied numerous times:
American Express continues to use celebrities in their ads. Some notable examples include a late 1990s ad campaign with comedian Jerry Seinfeld, including the two 2004 webisodes in a series entitled "The Adventures of Seinfeld & Superman." In late 2004, American Express launched the "My life. My card." brand campaign (also by Ogilvy & Mather) featuring famous American Express cardmembers talking about their life. The ads have featured actors Kate Winslet, Robert De Niro, Ken Watanabe and Tina Fey, Duke University basketball coach Mike Krzyzewski, fashion designer Collette Dinnigan, comedian and talk show hostess Ellen DeGeneres, golfer Tiger Woods, professional snowboarder Shaun White, tennis pros Venus Williams and Andy Roddick, Chelsea F.C. manager José Mourinho, and film directors Martin Scorsese, Wes Anderson, M. Night Shyamalan and most recently singer Beyoncé Knowles. In 2007, a two-minute black-and-white ad entitled "Animals" starring Ellen DeGeneres won the Emmy Award for Outstanding Commercial.
Many American Express credit card ads feature a sample American Express Card with the name "C F Frost" on the front. This is not a fabricated name, as Charles F. Frost was an advertising executive from Ogilvy & Mather.
In addition, American Express was one of the earliest users of cause marketing, to great success. A 1983 promotion advertised that for each purchase made with an American Express Card, American Express would contribute one penny to the renovation of the Statue of Liberty. The campaign generated contributions of $1.7 million to the Statue of Liberty restoration project. What would soon capture the attention of marketing departments of major corporations was that the promotion generated approximately a 28% increase in American Express card usage by consumers. Building on its earlier promotion, American Express later conducted a four-year Charge Against Hunger program, which generated approximately $22 million for a charity addressing poverty and hunger relief. In 2006, as part of Bono's Product Red, American Express launched the American Express Red Card with campaign starred by supermodel Gisele Bündchen. The card, currently available only in the United Kingdom, makes a donation to fight AIDS with every purchase made using the card. In May 2007, American Express launched an initiative called the "membersproject" . Cardholders were invited to submit ideas for projects and American Express is funding the winning (provide clean drinking water) project $2 million.
In April 1986 American Express moved its headquarters to the 51-story Three World Financial Center in New York City. After the events of September 11, 2001, American Express had to leave its headquarters temporarily as it was located directly opposite to the World Trade Center and was damaged during the fall of the towers. The company began gradually moving back into its rehabilitated building in 2002.
AMEX Bank of Canada was founded in 1853 in Toronto, however it currently has its headquarters of 3,000 employees in Markham, Ontario (a northern suburb of Toronto), as well as an office in Hamilton, Ontario. The company began operations as a bank on 1 July 1990 following an order-in-council made by the Brian Mulroney government on 21 November 1988. This decision was not without controversy as federal banking policy at the time would not ordinarily have permitted American Express to operate as a bank. It is also a member of the Canadian Bankers Association (CBA) and is a registered member of the Canada Deposit Insurance Corporation (CDIC), a federal agency insuring deposits at all of Canada's chartered banks.
American Express has several offices in the UK, including an 8-story European Service Center, known as Amex House in Brighton, England. It is a large 1970s-built white tower block, surrounded by several other smaller offices around the city. Amex House deals with card servicing, sales, fraud and merchant servicing. The official Europe, Middle East, and Africa HQ is located in the Belgravia district of Westminster, in central London, at Belgrave House on Buckingham Palace Road, SW1; other UK offices are based in Sussex at Burgess Hill. In November 2009, Brighton and Hove City Council granted planning permission for American Express to redevelop the Amex House site. It is anticipated, in line with the Council's plan for the Edward Street Quarter, that the existing Amex House will be demolished by 2016. More information on this development is available at http://www.edwardstreet.co.uk
The Japan, Asia-Pacific, and Australian Headquarters is co-located in Singapore, at 16 Collyer Quay, and in Sydney's King Street Wharf area, with the new state-of-the-art building receiving greenhouse status due to the environmentally friendly workspace that it provides.
American Express also has a significant presence in India. Its two centres are located at Gurgaon, Haryana and one at Mathura Road, New Delhi. The Indian operations of American Express revolves around the back office customer services operations apart from the credit card business for the domestic Indian Economy.
Key executives include: