Credit card giant American Express Co. said on Tuesday that it would receive US$3.39 billion from the U.S. government's US$700 billion 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.

(Xinhua News Agency December 24, 2008)