Hammer and Sickle II

Obama Fan Published:

Government doesnt like the kind of business you run.  Then they use Operation Choke Point to pressure banks to not lend businesses they dont like $....Scummy businesses or not they are legal businesses.  Yet that same initiative encourages them to lend to marijuana dispensary businesses even though marijuana is still ILLEGAL under federal and many state laws.  

Want to leave your comments?

Sign in or Register to comment.

  • wow, you can't even write p-o-r-n-o-graphy

  • ************* = *****

  • That is just so much BS...as usual.

    "According to the Six Month Status Report issued on Operation Choke Point by the House Oversight and Reform Committee, the DOJ launched Operation Choke Point in 2013, working in concert with a wide range of agencies including the FTC, FDIC, OCC, CFPB, and FBI.  The stated goal of Operation Choke Point was to “sensitize” the banking industry to the risk of doing business with legal but “undesirable” businesses through the issuance of non-public FIRREA subpoenas ( as opposed to enforcement actions where the authority could be challenged).

    Regulators and the DOJ highlight some two-dozen businesses that they consider “high risk” or “undesirable”, including ammunition dealers, producers of adult films, check cashers, short-term unsecured loans (commonly called “payday loans”), telemarketers, firearms/fireworks vendors, raffles, pharmaceutical firms, life-time guarantees, surveillance equipment firms, and home-based charities. 

    Operation Choke Point is fundamentally unfair to the banks and to the legal businesses that find their banking services cut off.  Once banking services are cut off to these state-licensed and regulated businesses, there is no chance for the business to appeal the decision. The company is simply in a business that, while legal, has been determined “undesirable” and therefore “high risk” by the federal bureaucracy. This Orwellian result is frightening. 

    The DOJ claims it is interested only in fighting consumer fraud and other illegal activities. If that is the case, why are the DOJ and regulators pushing banks to cease doing business with companies engaged in lawful businesses, rather than focusing on prosecuting the people and businesses actually engaged in criminal behavior?

    The point is simple and incredibly important. Under our constitutional republic and market-based economic system, unelected government employees should not decide which businesses may have access to banking services and which are to be denied. Those who have serious concerns about payday loans, check cashing services, adult films, family planning clinics, or other products and services should take their concerns to state or federal legislatures and attempt to enact reforms.

    We cannot allow this to continue. If government employees, acting without statutory authority, can coerce banks into denying services to firms engaged in lawful behavior that the government does not like, where does it stop? The same power that the DOJ uses today to choke off check cashers and ammunition vendors from banking services could tomorrow be used on convenience stores selling sugary sodas, restaurants offering foods with high trans-fat content, gun manufacturers, gambling casinos, adult film companies or family planning clinics."

    Some merchant categories that the FDIC has listed as being associated with high-risk activity include, but are not limited to:

    Ammunition Sales
    Cable Box De-scramblers
    Coin Dealers
    Credit Card Schemes
    Credit Repair Services
    Dating Services
    Debt Consolidation Scams
    Drug Paraphernalia
    Escort Services
    Firearms Sales
    Fireworks Sales
    Get Rich Products
    Government Grants
    Home-Based Charities
    Life-Time Guarantees
    Life-Time Memberships
    Lottery Sales
    Mailing Lists/Personal Info
    Money Transfer Networks
    On-line Gambling
    Payday Loans
    Pharmaceutical Sales
    Ponzi Schemes
    Pyramid-Type Sales
    Racist Materials
    Surveillance Equipment
    Tobacco Sales
    Travel Clubs