Finance
The growth of American Express in freight services business was hampered by two governmental actions in the early 1910s: the Mann-Elkins Act of 1910 decreed that express companies were "common carriers" subject to the rates and regulations of the Interstate Commerce Commission, while the creation of the parcel post service in January 1913 provided direct competition. But nothing stopped Amex from expanding into financial services and travel business. It went onto launch its travel charge card in 1958. 1980s witnessed a series of acquisitions by American Express to create an investment banking arm. 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. In 1984, American Express bought Lehman Brothers Kuhn Loeb, the investment banking and trading firm, creating Shearson Lehman/American Express. In 1987, Amex introduced the first variant of a credit card – Optima card. From here, there was nothing to stop Amex from becoming a full- fledged financial services firm. American Express’ journey from a freight services company to the Fortune 500 list is simply incredible. It has shown immense resilience and character. It has shown a wonderful skill to anticipate and adapt to changing scenarios. It always showed a willingness to take risks, innovate and grow. And that has made American Express what it is today - the world’s largest charge card issuer, the world’s largest travel company and the world’s largest travellers’ cheques issuer operating in 175 countries with 2,300 offices across the world.
This 21-story, 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. American Express moved its headquarters to another location in 1975, but retained travel services here. Important Dates
1850 1852 1868 1891 1910 1915 1919 1958 1981 1982 1987 1999 Wells, William G. Fargo, and John Butterfield form the American Express Company. Wells Fargo & Company is founded. American Express Company merges with Merchants Union to form the American Merchants Union Express Co.; Henry Wells retires. The American Express Traveler's Cheque is introduced. Mann-Elkins Act makes express companies subject to the scrutiny of the Interstate Commerce Commission. American Express opens its Travel Department. The American Express Co. is established to expand the company's international banking operations. The American Express travel-and-entertainment card (the 'green card') is introduced. American Express acquires Shearson Loeb Rhoades Inc. American Express is reorganized under American Express Corp. The Optima Card is introduced. American Express launches Blue, the first 'smart card' offered in the United States.
iNM - Magazine
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