American Express said on Monday it won approval to become a bank holding company, in a step that could cut its borrowing costs and give it more access to government money. [Link]
I am not sure how this lowers their borrowing costs. Could someone explain that to me?
I think this is all about making it easier for AmEx to get government money meant for banks.
Update: Duh,I answered my own question. The USGOV bailout money is provided at below market rates.