In a recent interview, American Express Chairman Ken Chenault offers his views on the overall economy, his company’s recent repayment of TARP funds, and proposed consumer protection regulations currently under discussion in Washington.
Mr. Chenault presents a cautiously optimistic view of the health of American Express as well as the overall economy. While he does not see “green shoots” yet, he does see growth opportunities for American Express even in the current environment.
In my opinion, Mr. Chenault also presents good arguments against several provisions of the proposed regulatory regime for credit cards. In particular, he outlines reasons to oppose efforts to prevent companies from practicing risk based pricing.
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Disclosure: The author does not directly own shares of American Express. Berkshire Hathaway, a major holding of the author, owns a large position in American Express.