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And here is today's scoop: USAA bank, one of the nation's largest, is grabbing coronavirus emergency checks. One family, a vet on disability, his wife and 2 kids, lost $3400, and USAA told them "you shouldn't have gotten into debt in the first place"
prospect.org/coronavirus/us…
USAA admitted to me they will reduce these emergency payments, intended for basic necessities during an economic crisis, if the payment is "deposited into an account with a negative balance." prospect.org/coronavirus/us…
The family hadn't accessed the account in over a year; they closed it after fraud was detected on the account. USAA said it wasn't fraud & they owed $8,000.
The IRS had the account on file so they sent the family's payment there. And USAA took it. prospect.org/coronavirus/us…
I have text messages from customers complaining to USAA that the bank took their stimulus money, and USAA bluntly saying if they have a negative balance they'll reduce it.
prospect.org/coronavirus/us…
I have since heard from other individuals that US Bank is also taking stimulus money. And the NY Times also found people in this situation (thanks to them for crediting me) nytimes.com/2020/04/16/bus…
I am really furious about this. It's not just that Treasury needs to put a stop to this, all of these charges need to be reversed and every individual needs to be made whole on these stimulus checks. I have no good opinion of banks but this is their lowest point.
The family who had $3,400 taken from them by USAA is from Minneapolis. Here's their rep in Congress, @IlhanMN: prospect.org/coronavirus/us…
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David Dayen
@ddayen
So here's my scoop: banks have been given the green light by regulators to take the $1,200 CARES Act payments and use them to offset an individual's existing debts. prospect.org/coronavirus/ba…
I got audio of a webinar between regulators and bank compliance officers. Banks have been asking whether they can use the payments to offset debts. "There's nothing in the law that would preclude that action," Treasury said twice on the call. prospect.org/coronavirus/ba…
This can even happen in the case of a "charged-off" account with a negative balance that a customer abandoned & thought was closed. If direct deposit was set up with the IRS to go to that account, the bank can keep the money & pay off old debt with it. prospect.org/coronavirus/ba…
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David Dayen
@ddayen
Reading the left-wing coverage of the end of the Democratic primary, you wouldn't know that the no-strings bailout of the largest corporations in America happened 3 weeks ago. It doesn't jibe with comforting stories about "winning" the ideological argument.
The left shouldn't kid themselves. Their leaders failed them and no major party wants them involved. The only card they have left to play lies in the monumental social unrest that will accompany the coronavirus Depression.
Lots of people are adrift and angry, while the Dow delivers healthy returns to a small sliver of the public. This will play out with inchoate rage. It's a moment of unlikely possibility. But it depends on where the anger leads.
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David Dayen
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So just to elaborate a bit on this, there are two separate, somewhat contradictory federal initiatives happening on medical supplies right now. (1/?)

prospect.org/coronavirus/un…
FEMA is just UPS - the very shipping clerk Trump said the USG was not - freeing up delivery of supplies to distributors.
The Strategic National Stockpile (SNS) is the one doing the bidding against the states. They have the contract relationships to buy equipment.
SNS then delivers to the very states they're bidding up the price against.
But what they could be doing reflects a missed opportunity.
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