This is a transcript of the Market Update: Close video report.

American Express Co. is seeking $3.5 billion in funds under the government's plan to directly invest in financial firms, according to a Wednesday report in The Wall Street Journal citing unnamed sources.

Earlier this week, American Express (nyse: AXP - news - people ) received approval from the Federal Reserve to become a bank holding company, which is a similar structure to traditional commercial banks. The credit card company now has access to financing from the Fed and the ability to grow a large deposit base.

The increased funding opportunities through government programs, including the potential $3.5 billion investment, could be a huge boost to American Express as one of its primary sources of funding has nearly disappeared amid the ongoing credit crisis.

American Express relied on packaging pools of credit card debt and selling them to investors in the securitization market. As investors have shied away from purchasing all but the safest forms of debt, the market for credit card-backed securities has dwindled.

American Express is also facing a slowdown in the broader economy, which has led to more customers missing payments and cutting back on spending, hurting the company's profitability.

Third-quarter profit at American Express fell 24 percent to $815 million, or 70 cents a share, the company said last month. The card company took a $1.36 billion provision for loan losses, 51 percent higher than the year-ago quarter.

The $3.5 billion from the government could help alleviate some of the company's funding problem and help bolster reserves to protect against future losses.

Justice Department investigating American Express

American Express has received a request from the U.S. Department of Justice for information regarding the credit card company's policies related to merchant surcharging, according to a regulatory filing Friday.

The company said it received a Civil Investigative Demand on Oct. 14 from the Justice Department's antitrust division. The department can issue CIDs to anyone it believes may have information related to an investigation, the filing said. Receipt of such a request does not mean that a formal complaint will be filed.

American Express said it intends to cooperate with the department's request for documents and other information regarding the company's policies related to merchant surcharging and its "anti-steering" policies that prohibit merchants from discriminating against the American Express card in favor of other forms of payment.

Meanwhile, the New York-based credit card company painted a bleak picture of the current operating environment, saying in a filing with the Securities and Exchange Commission that it does not expect to meet its financial targets until economic conditions improve.

On Thursday, American Express said it would cut 7,000 jobs, or about 10 percent of its worldwide work force, in an effort to slash costs by $1.8 billion in 2009 as it prepares for an increasingly difficult economic environment.