I just read this article on Bloomberg and was so excited to see Congress (this Congress!) actually considering drastically reducing a seriously outdated subsidy the Federal Reserve Bank has been giving to banks since 1930 as an incentive for them to join the FDIC. They want to reduce it from 6% to 1.5% and spend the 4.5% improving our seriously ruined roads. This improves the health and safety of all of us, especiallly if it includes better pedestrian and cycling infratructure in cities. As an insurer, USAA should be excited about this. But as a bank, especially if USAA holds over $1 billion in assets, this will mean less lunch money for executives. Yes, it's a small fraction of the cost of improving our seriously ailing infrastructure, but what I'm so excited about is that it's Congress basically ending a pointless subsidy. The only argument the banks have is that there will be "unintended consequences". Such as? The only ones I can imagine involve the banks playing with our money in even more irresponsible ways.
The main reason I bank with USAA is that it's not evil like the banks that have repeately destroyed the American economy with their compulsive gambling and greed. Soooo it would be awesome if USAA would make an official, public statement as to where they stand on this possible ruling. While Bank of America, Citigroup, JP Morgan and the like have their lobbyists working overtime to put a stop to this, what is USAA doing? We would love to know.
Navy Brat and lifetime USAA member thanks to dad's service as a submarine Captain.
Thank you for not thinking we are evil! :)
I don't know the answer to your question, but am tracking down someone who will! I will post an update as soon as I get one!
Thank you for you (and your Dad's) membership!
Here is what our lobbyists had to say :
This provision only affects Fed Member banks, so USAA is not impacted by this proposal. We generally focus our public policy efforts on issues that directly impact USAA or our ability to serve members – an approach that has served us and our members well. So we appreciate you raising this issue here, but it’s not something we’ll take a position on. Thanks for your understanding.
Hope this helps answer your question!