ICBA strongly disagrees with the assertion that the answer to the U.S. Postal Service’s growing operational, management and financial troubles is entering the banking industry.
Washington, D.C. (PRWEB) May 22, 2015
Independent Community Bankers of America® (ICBA) President and CEO Camden R. Fine released this statement following the U.S. Postal Service Office of Inspector General’s proposal to significantly expand the number of financial products it offers and possibly to become a licensed bank.
“ICBA strongly disagrees with the assertion that the answer to the U.S. Postal Service’s growing operational, management and financial troubles is entering the banking industry. The Postal Service has rung up billions of dollars in losses, is defaulting on required payments to its retiree health-care plan, can’t borrow another dime from the U.S. Treasury and receives an estimated $18 billion annually in taxpayer subsidies and special privileges.
“The Postal Service’s role in delivering the mail does not make it a good fit for handling credit or lending to consumers. The idea of trying to salvage a floundering operation by venturing into a new business with inherent risks and, for which the Postal Service has no qualifications or expertise, defies logic, reason and prudence.
“Financial services are being provided competitively in the private sector. The last thing we need is more government intervention in Americans’ personal finances—one that would further put taxpayers on the hook for the Postal Service’s mounting losses. The Office of Inspector General’s proposal would be a disaster waiting to happen.
“Furthermore, The OIG’s office should cease playing the role of business consultant to USPS and instead focus on evaluating and improving USPS’ existing programs—which is the traditional role of an Inspector General.”
The Independent Community Bankers of America®, the nation’s voice for more than 6,000 community banks of all sizes and charter types, is dedicated exclusively to representing the interests of the community banking industry and its membership through effective advocacy, best-in-class education and high-quality products and services. For more information, visit http://www.icba.org.