Freidman Billings Ramsey notes AXP's released Oct trust credit statistics yesterday. The increase in delinquencies accelerated, up 35 bps MoM and 167 bps YoY, to 4.4%, which is the highest rate since inception of the data. FBR believes that a challenging macro environment will lead to higher-than-expected credit costs over the next 9-15 month period adversely impacting earnings, while AXP remains highly dependent on the capital markets for funding relative to peers. Firm does not believe AXP will be able to grow deposits to a significant enough level that meaningfully reduces its dependence on the capital markets-related fundings, even after becoming a BHC.