The U.S. Census Bureau announced today (11/14/08) that advance estimates of U.S. retail and food services sales for October, adjusted for seasonal variation and holiday and trading-day differences, but not for price changes, were $363.7 billion, a decrease of 2.8 percent (±0.5%) from the previous month and 4.1 percent (±0.7%) below October 2007. Total sales for the August through October 2008 period were down 1.3 percent (±0.5%) from the same period a year ago. The August to September 2008 percent change was revised from –1.2 percent (±0.5%) to –1.3 percent (±0.3%).

Retail trade sales were down 3.1 percent (±0.5%) from September 2008 and were 5.0 percent (±0.7%) below last year. Motor vehicle and parts dealers sales were down 23.4 percent (±2.1%) from October 2007 and sales of furniture and home furnishings stores sales were down 13.5 percent (±3.3 %) from last year.

-- U.S. Census Bureau

The Federal Reserve has approved a request by American Express to transform itself into a bank holding company, a move that makes the card company eligible to participate in current and future programs to provide help to ailing financial institutions.

Federal Reserve banking regulators said they approved its application because of the “unusual and exigent circumstances” affecting financial markets and the Amex's potential need to tap into the rescue funds available to shore up the economy. As a bank holding company, American Express would gain access to the Treasury Department’s bailout plan for banks, improving liquidity and possibly giving the company the opportunity to purchase a traditional banking operation.

Amex has owned a savings bank and a commercial bank for some time, but most of the card company's financinghas come from commercial paper markets, which lately have become a difficult and expensive place to borrow.

“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,” said Amex CEO Kenneth I. Chenault. “We will continue to build a larger deposit base to broaden our funding sources.”

Rep. Barney Frank (D-MA), chairman of the House Financial Services Committee, has asked the Treasury Department to delay completing regulations to implement the Unlawful Internet Gambling Act until after the Obama administration takes office.

The request came in a letter from Rep. Frank to Treasury Secretary Henry Paulson and Federal Reserve Chaiman Ben Bernanke. The letter noted that the regulations are likely to create burdens for the financial services industry at a time when the banking and credit systems are under great stress and suggested the incoming administration should have an opportunity to review the rules before they take effect.

The Unlawful Internet Gambling Act was passed in 2006, but no rules have been issued to determine how the law will be enforced or even which transactions fall under the definition of "unlawful" gambling. The rules, however, like many others, are being expedited by the Bush administration, which is seeking to complete as much of its rulemaking backlog as possible before leaving office.