CEO Forum: AmEx chief talks about credit's future

ITHACA, N.Y. -- This seems to be a year when all lines lead to American Express CEO Kenneth Chenault.

He had a connection to the presidential race, although not a personal role, through the failed campaign of Republican Mitt Romney, a classmate at Harvard Law School who became a business colleague at Bain & Co.

Last month, a childhood acquaintance, David Paterson, was sworn in as governor of New York after Eliot Spitzer became embroiled in a prostitution scandal and resigned.

AmEx will be vulnerable if the credit crisis spreads. The company wrote off $440 million for bad debts in the last quarter of 2007.

Credit card providers also are bracing for new regulations. Many members of Congress, including presidential candidates Hillary Clinton and Barak Obama, say consumers too often are perplexed by the terms and surprised by rising rates or fees.

Chenault, 56, hopes to keep AmEx growing by building connections with banks, merchants and affluent consumers, including many who are comfortable with MasterCard and Visa.

Last year, he reorganized the company to focus on its consumer and business customer bases.

Investors are wary. AmEx shares are down about 18% during the past 12 months.

Chenault discussed his plans, his views on leadership and the state of the economy with USA TODAY's David Lieberman at the eighth USA TODAY CEO Forum in conjunction with Cornell University's Johnson Graduate School of Management and School of Hotel Administration.

The interview took place in front of an audience. These are edited transcripts.