NEW YORK - (02/02/05) -- American Express Co. said Tuesday itplans to spin off its American Express Financial Advisors unit toAmEx shareholders in order to focus on its payment and networkprocessing business. AEFA, based in Minneapolis, employees 12,500financial advisers/brokers and generated 21% of the parent's netincome last year. The spin-off will leave AmEx with four mainbusinesses: credit cards, payment processing, travel booking andtravelers checks; and an international bank that serves otherfinancial institutions. AmEx itself was created by a 1994 spin-offfrom Lehman Brothers Holdings. James Cracchiolo, head of thebrokerage unit, will become CEO of the newly independentcompany.
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As AI and digital assets become mainstream, banks are spotting new opportunities to integrate payments with other activities.
July 4 -
House Republicans overcame internal divisions to narrowly pass President Trump's tax and spending package Thursday afternoon. The measure would cut the Consumer Financial Protection Bureau's funding level, among other provisions.
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A new partnership with Google Cloud will let the Spanish bank offer Gemini to all staff after a successful ChatGPT deployment.
July 3 -
Atlanta-based CoastalSouth's initial public offering prices at $21.50 a share; Valley National Bancorp announces Lyndsey Sloan will succeed Gary Michael as general counsel; Webster Financial Corporation taps a new chief risk officer and appoints a new board member; and more in this week's banking news roundup.
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Capital One closed the deal to buy the credit card provider in May and as part of the review process, decided to exit its home equity lending business.
July 3 -
In a rare move for a credit union, the Seattle institution has snapped up the 13-member team that created EarnUp's AI Advisor product.
July 3