Bank/Thrift Supervision   |    Capital    |    CFPB    |    Deposit Insurance    |    Interchange    |    Mortgage Finance
Municipal Advisors   |    OCC-OTS Merger   |    Preemption    |    QM - QRM    |    Swaps   |    Volcker Rule    |    Full Topics List
Qualified Mortgage - Qualified Residential Mortgage
Consumer Financial Protection Bureau - CFPB
Bank/Thrift Holding Company Supervision
Deposit Insurance
Mortgage Finance
Municipal Advisors
OCC-OTS Merger
Volcker Rule
Corporate Governance
Financial Stability Oversight Council (FSOC)
Office of Financial Research (OFR)
Systemic Risk
Supervision and Oversight
Payment, Clearing and Settlement
Prudential Supervision
Trust & Securities
Asset-Backed Securities
Resolution Authority

Wednesday, June 11, 2014

Issa: FDIC ‘Intimately Involved’ in Operation Choke Point

New evidence indicates the FDIC has been closely involved in Operation Choke Point, House Oversight and Government Reform Committee Chairman Darrell Issa (R-Calif.) said in a letter to the agency. Citing internal Justice Department reports and correspondence, Issa said that the FDIC discussed Choke Point with Justice personnel early on and volunteered two FDIC attorneys to work on the project.

In congressional testimony last month, the FDIC’s acting general counsel had denied any “substantive involvement” by the agency in Choke Point. Choke Point is a Justice Department initiative to cut off financial services to businesses it deems risky or objectionable. The operation “effectively transformed the [2012] FDIC guidance on high-risk businesses into an implicit threat of a federal investigation,” Issa wrote.

Issa asked the FDIC to turn over all communications between the agency and the Justice Department’s Civil Division, as well as all documents relating to the FDIC’s guidance on high-risk businesses.

ABA has strongly opposed the premise of Operation Choke Point. In a Wall Street Journal op-ed, ABA President and CEO Frank Keating wrote:

The government is compelling banks to deny service to unpopular but perfectly legal industries by threatening penalties,” “Some of these businesses may indeed be risky. But that doesn't justify pre-emptively declaring them all criminals and freezing their access to the payments system.

Read Issa’s letter.

No comments:

Post a Comment

Please read our comment policy before making a comment.