American Express to receive $3.39 bln from U.S. gov't

Special Report:Global Financial Crisis　

An American Express credit card. American Express Co. said on Tuesday that it would receive 3.39 billion U.S. dollars from the U.S. government's 700 billion dollar financial rescue program.(Chinese media/AFP File Photo)
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WASHINGTON, Dec. 23 (Chinese media) -- Credit card giant

American Express Co. said on Tuesday that it would receive 3.39 billion U.S.

dollars from the U.S. government's 700 billion dollar financial rescue program.

In exchange for the capital injection, American

Express would sell preferred stock and warrants to the U.S. Treasury. The

preferred shares will pay dividends at a rate of 5 percent annually for the

first five years and thereafter 9 percent annually.

The Federal Reserve last month granted American

Express to become a bank holding company, which will allow it to have permanent

access to the central bank's emergency loan window.

American Express has announced to cut 7,000 jobs, or

nearly 10 percent of its global work force after it reported in October that its

profit fell 24 percent in the third quarter.