NEW YORK — American Express has sought and received Federal approval to become a bank holding company and has reportedly sought $3.5 billion in bailout money from the Treasury, according to the company and press reports.

In an announcement of its change in status, American Express CEO Kenneth Chenault indicated that the need for capital was paramount in the big card issuers decision.

"Given the continued volatility in the financial markets, we want to be best positioned to take advantage of the various programs the federal government has introduced or may introduce to support U.S. financial institutions," Chenault said. "We will continue to build a larger deposit base to broaden our funding sources. With Federal Reserve oversight we should gain greater access to the capital on offer under the current and any future government-sponsored programs. This decision to become a bank holding company does not fundamentally change American Express' core focus on the payments industry, nor will it require any significant divestitures," he added.