Thread regarding USAA layoffs

The banks are going to merge. It could be that they are propping up FSB with USB assets in order to selling FSB. FSB is not doing so well anymore. USAA sold Brokerage and Mutual Funds some years ago.

USB is being dissolved into FSB. FSB is not being collapsed or otherwise changed. USB is the entity that will no longer be active after this consolidation.

Sorry, I checked and found I was wrong about a few things.

USAA Federal Savings Bank (FSB) is regulated by the OCC and the CFPB (consumer financial protection bureau?)

USAA Savings Bank (USB) is regulated by the FDIC and the CFPB. It is a state (Nevada) chartered banks, and isn't a member of the Federal Reserve System. Its old name was USAA Credit Card Bank.

If they merged, and moved to Arizona, I guess they would just be regulated by the FDIC and CFPB. And also, that USAA Bank would be part of the Federal Reserve... Sources please?

I think you're saying that FSB and USB are merging and going to be run under an Arizona state banking charter?

That would be surprising:

1. The Texas Department of Insurance granted USAA some special status as a Bank holding company in the 1970s, that allows limited transfers between the LoBs, i.e. P&C to Life to Bank. If FSB (Federal Savings Bank) didn't stay in Texas, I doubt this could continue.
2. USB in Nevada is regulated by the OCC. FSB is currently regulated by the OCC and a little bit by the FDIC. Even if FSB and USB were combined, and they got an Arizona state bank charter (and relinquished FSB's current federal bank charter), the combined FSB+USB would still be regulated by the OCC, FDIC, and AZ state bank regulators. State chartered banks are not required to be members of the Federal Reserve, but it's unclear that would help FSB.

A few things to consider:

• USB is less than 10% the size of FSB. It is based in Nevada and only handles credit cards. Lots of banks do that, have their credit card operations in Nevada, because of laws there that make it easier to operate (I forgot the details).
• USAA's second biggest "remote" office has already been in Arizona, for the past 25 years. Prior to COVID19, about 3500 people worked there, including several hundred FSB people.
• Lax usury laws in Arizona?! No. I live in Arizona. FSB was cutting back on the number of loans and mortgages it made when I was an employee in Nov 2022. They discontinued home equity loans, home equity lines of credit and more in 2020 - 2021. Making loans at slightly higher rates isn't enough to be worth moving.

Combining FSB + USB and changing to an Arizona state bank charter would be inconvenient and require big changes. I'm very curious why they'd do this.

How do you know it is going to happen?

@kzv+1nlX723R

That makes sense, I think. So am I understanding correct that there's the Federal Savings Bank (FSB) and USAA Savings Bank (USB). Both have different regulatory agencies that they report to, and the idea here is that USAA might combine the two into one entity that reports to the state charter rather than the OCC? Or is that way off?

I know next to nothing about this kind of stuff, but on the face of it, it seems like getting one more federal agency out of USAA's hair could only be a good thing, no?

FSB is a national charter (OCC regulated). USB is in Nevada (state chartered).
Yes it does happen banks get sick of the OCC and switch to a state charter.

Case in point. Dr-gs are bad for you.

What are the "two banks" you're referring to? There's FSB and...?

Where is this info coming from?

What nonsense.

This can’t be right. There’s no way this CEO and his EC would do anything even borderline unethi…….never mind.

Where is this coming from?

I work in P&C so I don’t understand the merger part but it makes sense that Wayne and his corrupt EC would want to move to a state where they could charge the highest possible interest rates. Our poor Members. But I guess if they open up the eligibility requirements for Membership, then all those who serve or have served can switch to a Credit Union where they wont get repeatedly taken advantage of.

https://www.law.cornell.edu/cfr/text/12/5.33

People who work for FIs- do they split up FSB and USB?

Legally they can't 'merge' - what rumor mill are you listening to? To think that our FSB would put all of its financial eggs into one basket is crazy. If one goes under, they all go under and then all accounts get willed out to other FIs, already defined in USAAs will of accounts.