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SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of
The Securities Exchange Act of 1934
Date of Report (Date of earliest event reported) November 21, 1994
AMERICAN EXPRESS COMPANY
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(Exact name of registrant as specified in its charter)
New York 1-7657 13-4922250
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(State or other jurisdiction (Commission (IRS Employer
of incorporation) File Number) Identification)
American Express Tower, World Financial Center
New York, New York 10285
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(Address of principal executive offices) (Zip Code)
Registrant's telephone number, (212) 640-2000
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(Former name or former address, if changed since last report.)
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Item 5. Other Events
On November 21, 1994, American Express Bank, a subsidiary of
American Express Company, issued a press release, a portion of which is set
forth below:
NEW YORK, November 21 -- American Express Bank said today that a
subsidiary, American Express Bank International (AEBI), had reached an
agreement with the Justice Department to settle claims arising out of the case
of two former AEBI employees convicted last June on charges of money
laundering and bank fraud.
The settlement includes the payment of AEBI of $7 million to settle a
civil action against AEBI and $7 million to settle forfeiture claims, both of
which relate to activities of the former employees. The company will also
spend at least $3 million through the end of 1995 to continue to enhance
compliance programs.
In addition, the terms of the settlement call for AEBI to withdraw
its claims to a $30 million client account that served as collateral for $19
million in AEBI loans to the client.
Under the settlement, AEBI does not admit to any wrongdoing and the
U.S. government releases AEBI from any liability arising out of this matter.
The loans affected were fully reserved and written off in prior
quarters. The compliance costs have been built into 1994-95 budgets. The
remaining $14 million cost of the settlement will be charged against reserves
and will not have an impact on American Express Bank's net income.
AEBI represents some 5 percent of the $14.3 billion in assets of
American Express Bank. AEBI operates in the United States to provide banking
services to overseas clients of American Express Bank. American Express Bank,
which operates internationally, serves clients in 37 countries and is a
subsidiary of the American Express Company.
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SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934,
the registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
AMERICAN EXPRESS COMPANY
By: /s/ Stephen P. Norman
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Name: Stephen P. Norman
Title: Secretary
Dated: November 21, 1994
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