American Express (AXP) to pay $230 to settle with the DoJ

American Express (NYSE: AXP) has entered into agreements with the U.S. Department of Justice and reached an agreement in principle with the Staff of the Board of Governors of the Federal Reserve System to resolve previously disclosed investigations into historical sales practices for certain U.S. small business customers, which the company ended in 2021 or earlier. We cooperated extensively with these agencies and our regulators and took decisive voluntary action to address these issues, including discontinuing certain products several years ago, conducting a comprehensive internal review, taking appropriate disciplinary measures, making organizational changes, and enhancing policies, compliance, and training programs. Pursuant to the agreements and after crediting, American Express will pay approximately $230 million in total to resolve these matters. The costs associated with the agreements were largely reserved for in prior periods and do not impact the 2024 guidance previously provided. We expect the resolution with the Federal Reserve to be finalized in the coming weeks.”

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