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...Amex's financial troubles could largely be chalked up as honest mistakes or twists of fate, one episode revealed a darker side of the corporate culture. In 1989 Amex managers admitted conducting a public smear campaign against Edmond Safra, a wealthy financier who had sold a bank to American Express in 1983. After he departed to start a competing bank, American Express officials began spreading the word that Safra was caught up with money launderers and drug traffickers...

Author: /time Magazine | Title: Financial Services Hitting the Credit Limit | 10/21/1991 | See Source »

...many things go wrong for American Express in such a short time? Analysts who follow the company say much of the same hubris and lack of managerial controls responsible for the Optima scandal may also be the cause of past disasters. The company's failed foray into cable TV, critics say, was an example of an unwise management decision to find synergy where none existed. The company may have lost sight of its limits, says analyst Daniel Murray of Argus Research. "If you invented your own private money, you might be a little arrogant...

Author: /time Magazine | Title: Financial Services Hitting the Credit Limit | 10/21/1991 | See Source »

...aware of the problems at Optima until a month or so ago, a point that raised eyebrows throughout the industry. Says a high- ranking executive at a rival credit-card company: "I heard rumors about Optima's losses a year ago. Something's wrong when competitors knew before American Express senior executives did. If James Robinson didn't know, he should have...

Author: /time Magazine | Title: Financial Services Hitting the Credit Limit | 10/21/1991 | See Source »

CAPTION: AMERICAN EXPRESS STOCK PRICE, monthly closings

Author: /time Magazine | Title: Financial Services Hitting the Credit Limit | 10/21/1991 | See Source »

When James Robinson III needs a little informal advice on how to polish the image of American Express, he has only to turn to his wife Linda. As president of the Manhattan p.r. firm Robinson, Lake, Lerer & Montgomery, she ranks among the most powerful -- and controversial -- publicists in America. Her clients range from Texaco, which she helped to fend off a takeover bid staged by raider Carl Icahn, to junk-bond king Michael Milken, whose infamy she tried to % subdue. Together the Robinsons are a nonpareil power couple who cut a broad swath through the toniest boardrooms and ballrooms...

Author: /time Magazine | Title: Power Marriage Has Its Privileges | 10/21/1991 | See Source »

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