Posted on 04/22/2010 7:21:22 PM PDT by billorites
USAA members and friends are urged to contact U.S. Senate regarding financial services legislation.
USAA is facing a serious challenge due to financial services legislation, known as S.3217, that is being considered by the U.S. Senate right now. We are reaching out to our members, employees and friends in an effort to share details about how the proposed legislation would impact USAA, and we are asking them to take action. Legislation Links S.3217 As Filed S.3217 Committee Summary S.3217 Committee Report
A message from USAA President and CEO Joe Robles that provides more details is being e-mailed to members. Please take a moment to read the message and take action.
USAA is unique because we are a member-owned association that focuses on the needs of the military and their families. Please help us defend the association we share together. Contact your U.S. senators and urge them to amend a portion of the bill known as the "Volcker Rule," to eliminate its effect on a company like USAA.
We will provide regular updates in this Newsroom and via social media including USAA's Facebook and Twitter sites.
The Volcker Rule
The "Volcker Rule," as drafted in Section 619 of the Restoring American Financial Stability Act of 2010 ("the Senate bill"), gives regulators the discretion to limit and prohibit certain investment activities of financial services companies, like USAA. In particular, this bill directs regulators to prohibit government insured depository institutions from engaging in "proprietary trading," whereby a company trades for its own account. However, the reach of the bill extends beyond the bounds of a depository institution to its affiliates and subsidiaries. For insurers that own banks or thrifts, like USAA, this could mean that all of the investment activity essential to the running of the insurance operations would be significantly limited to investment in only government securities, despite these operations already being heavily regulated by state insurance regulators. The result would be that products that require more robust investments to support them would be limited to government securities, which do not earn enough to keep the cost of such products affordable.
To illustrate this effect, insurers collect premiums from customers in return for a promise to pay a possible future claim. During the time between the collection of premiums and the claims payout, the insurer takes those premium dollars and invests them in order to ensure that funds exist to pay later arising claims. By limiting an insurer's investments to government securities, that insurer may not be able to generate the income necessary to continue offering its products at affordable rates. This could then result in the need to charge higher premiums on policies and pay less favorable rates on annuities.
Just signed my 13 year old son up with USAA Savings Bank for their Teen Checking Acct. He'll get his allowance posted monthly to his debit card/savings acct.
If he's smart he'll stick with them for banking and insurance for the rest of his life.
And get his kids on with them too. They are a very classy outfit.
Am a USAA member for 44 years. If they say do it, do it.
God bless you. I have been a member since 1976. They are what is best in what we have left in America!!
They are the most highly rated, in terms of underwriting reserves and customer satisfaction, insurance company in the USA. No one else comes close.
They started 80 years ago catering to military officers, but have expanded to serve families, dependents, retirees of uniformed services, etc.
They run a very tight ship. I called them to increase my umbrella insurance coverage a couple months ago. Within a week an appraiser was crawling through my house looking for trampolines and hot tubs.
I sent a big check recently through the online bill pay service of the USAA Savings Bank to an annual charity I have been committed to. Within an hour a fraud specialist from the USAA savings bank called to mispronounce my name and make sure that I had indeed authorized a check that was larger than what I typically write.
They run a very tight ship in which loyalty flows both up and down the chain of command. I feel very lucky to be a customer.
USAA is awesome. We have them for just about everything.
Yes, if they've turned activist, we're right on the precipice, leaning foward.
USAA is the best. A few months after I signed with them I fell out of my chair when they sent me a dividend check. This outfit should be held as an example of how to run a company. Two minor fender benders and two moving violations in 5 years and no increase in my car insurance premium. Friendly and helpful the few times I’ve called. Their bank charges extremely low credit card rates. Twice, after suspected online credit card fraud, they had a new card in the mail to me next day. I can’t praise them enough.
This must be the e-mail from USAA I accidentally deleted this morning. The subject line was something to the effect of “your help is needed”.
About a year ago my wife, a college professor, had her wallet stolen from her office.
I learned about it around 10:00pm at night when an email from USAA told me to call their credit card fraud department.
"Yeah, sure I will," I thought.
But the phone number was a San Antonio number, same prefix as other USAA numbers.
The guy asked, "Has your wife purchased $500 worth of liquor tonight in Worcester, MA? Has she spent $150 on gasoline today? Did she just buy $300 worth of troll dolls and incense at Spencer Gifts in Salem, NH?"
They're watching out for their customers.
Serious attention to the business of underwriting keeps costs down for their members.
USSA Ping.
Just got the same e-mail. Wonder what Robles thinks about his oath as an officer and what’s going on in DC...
Make that: U.S.A.A. Ping.
I’ve been with USAA for 25+ years through my father who was career Army (the Duke in my screen name). I love USAA! We have everything through them. Every time I have to call them, I end up telling them what a pleasure they are to deal with. Every company should be run as well as they are.
I have written my Senators but since they are Patty Murray and Marie Cantwell, don’t think it will do much good.
I really like USAA will drop a note to the congress critters tomorrow..
Probably wouldn't tell you.
Instead would say something like, "You salute the uniform not the man."
I’ve been with USAA for 32 years and this is the first I’ve EVER heard of them urging member involvement in anything political!
Leave it to this administration to eff up a company that does everything as well as this one does.
These government bastards need to go.
What I heard was that it was a new group for enlisted.
I was not an officer either, but I can’t find anyone who can beat them.
Sure, they discriminated, but that doesn’t mean they don’t offer a superior product.
Right now, they do a good job of taking care of our needs. Would it have been nice to be able to get in as a junior enlisted member? You bet, but you know what? I got used to being discriminated against by many, including the military themselves because I was enlisted.
I grew thick skin and dealt with it.
Updated: Legislation Prompts USAA to Urge Action
Posted on Apr 29, 2010 | Category: Latest News
UPDATE: We appreciate the hundreds of thousands of USAA members who have contacted their senators to ask for an amendment to the financial regulatory reform bill in the U.S. Senate (S.3217). Thanks to your voices, important issues are being seriously considered by key members of the Senate.
On April 29, the U.S. Senate began debate on S.3217 (the Restoring American Financial Stability Act of 2010) in a process that could last two weeks or longer. During this period, senators will debate provisions of the bill such as proposed reforms to derivatives trading, a consumer finance protection agency, addressing the economic risk of companies regarded as “too big to fail,” and the Volcker Rule. Senators will also consider amendments to the bill. USAA staff — aided by ongoing member and employee outreach to senators — will continue to fight to include an amendment clarifying that the bill’s Volcker Rule provision excludes investment portfolios of insurers with affiliated banks.
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.