This is a letter I received from the USAA regarding the “Volcker Rule”. I am not sure about the legality of a Federal government entity soliciting votes regarding a bill in the Senate (I imagine that the separation of powers would allow it) and I can’t say I have a problem with it.
I do find it odd, however. I have yet to receive a letter from my bank, or Verizon or Comcast or Sallie Mae, asking me to vote this way or that.
All of this is also independent of my personal views on the Volcker Rule.
Dear Mr. Gebhardt:
Rarely in our 87-year history have we turned to USAA members to weigh in with elected representatives on an issue of great importance. But, we are now.
The U.S. Senate currently is considering legislation (S.3217) that would impose new rules on the nation’s financial services industry, including USAA.
As the leading provider of financial services to America’s military community, USAA supports financial services reform.
However, the current Senate bill would disproportionally impact USAA because we are a unique and fully integrated association. USAA is not like the banks and other companies that helped bring down our economy, and we never took a penny of TARP funds. We do not engage in the harmful practices this legislation seeks to resolve.
If unchanged, the bill would:
Prevent USAA from managing the association’s portfolio as we have for the past 87 years.
Jeopardize our ability to continue offering many of our competitive products.
Limit our ability to return money to our members. Last year, USAA returned $1.2 billion to our members in the form of distributions, dividends, and bank rebates and rewards.*
So, we are asking all USAA members and employees to urge their U.S. senators to amend a portion of the bill, known as the “Volcker Rule,” to eliminate its effect on a company like USAA. Please know that this legislation does not impact individual member’s investments.Regardless of the outcome of the legislation, USAA will remain a unique and enduring association that’s all about you — the military and their families.
Please take action on this matter by immediately contacting your U.S. senator. You may click here to access a special website that will enable you to quickly send an e-mail message to your senator.
Thank you for your help and support,
Josue (Joe) Robles Jr.
Major General, USA (Ret.)
President and CEO
What are your thoughts?
Update: TheRedGear has helpfully pointed out that USAA is a private company and, as such, is perfectly entitled to pursue its own interests. This also brings about another interesting point, although admittedly not for this article: I wonder how many people assumed that the USAA had government affiliations, and I wonder how this has affected USAA’s treatment by its policy holders? This could affect not only letters regarding senate votes, but public statements, services offered, and interactions with clients (then again, maybe it’s more common knowledge than I thought that they have no government ties).
USAA is a private company. While they solicit services to Military families, they have no official affiliation with the Federal Government.
That being said, this seems to be a private company after its own interests (NOTE: there’s nothing wrong with that).
TheRedGear: You are correct, and this was an egregious mistake on my part. I will update the post accordingly.
In the meantime I also found this in the WSJ:
The House Bill: Creates an independent, freestanding Consumer Finance Protection Agency that would not be part of the Fed. Includes a Consumer Advisory Board to advise and consult with the agency’s director, appointed by the president with Senate consent. The CFPA oversight would exclude insurance companies, auto dealers, accountants and employee benefit plans, among other businesses.
I imagine this means the house bill would not affect the USAA.
Thanks again for the clarification.