Special Report: Client Complaints Threaten to Tarnish American Express' Golden Name

With its vaunted brand and booming money management business, American Express (AXP Quote) figures it's ready to be a prime-time Wall Street player. In fact, the credit card giant's financial-planning division wants to get four times as big in eight years by amassing $1 trillion in assets.

As it expands, however, American Express Financial Advisors, now with 2 million clients, finds itself under increasing scrutiny. While the company reports a high client-satisfaction rate, hundreds of disgruntled customers have lodged formal complaints against the firm in recent years for allegedly deceiving them, mishandling their money or dribbling their investments away in inferior company products.

In some of the cases, American Express paid sums of up to $35,000 to unhappy investors. Other complaints were dismissed, while more are pending in the courts and with the National Association of Securities Dealers. American Express defends its performance and denies extensive client disillusionment. ...