AmEx To Spin Off BrokerageUnit
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.