Explore The NRA Universe Of Websites

APPEARS IN Legal & Legislation

Update on Operation Choke Point: Evidence Mounts of Government Policy

Friday, May 23, 2014

Earlier this month, we reported on concerns being raised by the activities of federal banking regulators under the umbrella of Operation Choke Point.  Many have claimed the regulators are using their ratings and enforcement authorities to intimidate banks into refusing or severing business relationships with lawful, though politically-disfavored, industries, including those involved with firearms and ammunition. As we noted in our report, we are aware of situations in which banks have refused or severed relationships with customers in the firearm industry, but the reasons underlying these decisions were often disputed (with the banks claiming one thing and the customer another).  At the time of that report, we were unaware of a “smoking gun” to tie these decisions back to pressure from regulatory authorities.

That may be changing.  The Washington Times has been running a series on the controversy, and a recent piece explained that the Federal Deposit Insurance Corp. (FDIC), an independent federal entity that ensures bank deposits, has for the last several years been urging banks to take a more active role in policing the activities of the banks’ customers.  As part of this effort, the FDIC published a list of merchants engaged in so-called “high risk” activities that it claimed should be of concern to banks.  That list is still available on the FDIC’s website.  Moreover, NRA has received a copy of a PowerPoint presentation from an Examiner Education workshop conducted by officials from the FDIC, Department of Justice, and Office of Comptroller of the Treasury that also lists “Ammunition Sales” and “Firearms/Fireworks Sales” as “High Risk Merchants/Activities.”  One of the presenters verified the authenticity of that document.

A number of questions remain, however.  First is why firearm and ammunition sales, already among the nation’s most heavily-regulated and scrutinized consumer activity, would be considered a financial risk to banks or consumers, especially considering the robust economic activity in that sector over the last several years.  Evidence of pervasive consumer fraud or bank failures attributable to firearm-related businesses is non-existent.  

The Times story and the FDIC website, however, provide a clue with mentions of “reputational risk” to banks.  As one banking website put it, “some of the merchant categories listed as ‘high risk’ are obvious choices.  ‘Debt consolidation scams’ and ‘Ponzi schemes,’ for instance, should be unbankable, while others seem to be there simply because they're icky ….”  In other words, regulators may be pressuring banks to consider not just the financial soundness of their business relationships but whether the nature of certain legal businesses could be considered (by the regulators or other persons of influence) personally or politically objectionable.

Examples continue to mount, of businesses that have either lost existing banking relationships or been refused new ones based not on their creditworthiness or business performance but on vague references to the “industry” in which they operate.  In some cases, the bank has even explicitly noted that the individual business was not to blame.  Needless to say, nothing could be more un-American than lawfully- operated private businesses being forced out of the market without reference to any individual wrongdoing or mismanagement, merely on the whim of government regulators who find them distasteful. 

Fortunately, a number of Congressional representatives -- notably Rep. Blaine Luetkemyer (R-MO), who on Wednesday appeared on the Cam & Co. radio show to provide an update -- continue to investigate these allegations of regulatory abuse and are keeping all their options on the table. 

The NRA is also keeping all options on the table as details emerge, and will continue to pursue this story and work with members of Congress and affected parties to obtain answers and seek solutions.  The efforts of the Obama Administration to impose its vision of a "fundamentally transformed" America have already fallen hard on those who value the Second Amendment, and some fear this could be yet another example of his "phone and pen" style of imperial governance.

TRENDING NOW
Washington: NRA Files Legal Challenge Against Misleading Ballot Title for Gun Control Initiative

Thursday, May 17, 2018

Washington: NRA Files Legal Challenge Against Misleading Ballot Title for Gun Control Initiative

Yesterday, NRA filed a legal challenge in the Thurston County Superior Court objecting to the misleading and inadequate ballot title for Initiative 1639, which seeks to further restrict the Second Amendment rights of Washington's law-abiding citizens.  The Thurston ...

Hard Times for Dick's as Second Amendment Supporters Respond to Company’s Anti-Gun Bent

Hunting  

News  

Friday, May 11, 2018

Hard Times for Dick's as Second Amendment Supporters Respond to Company’s Anti-Gun Bent

We have recently been reporting on the bizarre anti-gun activism of one of the nation’s larger firearm retailers, Dick’s Sporting Goods and its affiliated Field & Stream stores. First, the company announced it would stop selling most centerfire semi-automatic ...

Sorry, Alyssa, But We're Glad We Came

News  

Friday, May 11, 2018

Sorry, Alyssa, But We're Glad We Came

You likely recall we mentioned a new anti-gun organization recently formed, which was billed as the brainchild of actress Alyssa Milano.  You may also recall that we reported her group, NoRA, had made the vaguely threatening proclamation, ...

Tuesday, May 8, 2018

ALERT! Can't Wait for Your YETI Cover Up Stickers?

Approximately 100,000 free stickers, proudly displaying the message "I STAND WITH THE NRA FOUNDATION," were distributed at the NRA Annual Meeting in Dallas, Texas last week.  These stickers were designed to cover up the YETI ...

Anti-Gun Democrat Proposes Banning Semi-Autos and Going After "Resisters"

News  

Friday, May 11, 2018

Anti-Gun Democrat Proposes Banning Semi-Autos and Going After "Resisters"

The headline of the USA Today op-ed said it all. Anti-gun Congressman Eric Swalwell (D-Calif.) last week advocated for legislation to ban an as-yet undetermined class of semi-automatic firearms and to “go after resisters” who refuse to relinquish their ...

Oregon: NRA Files Comments Against Initiative to Restrict Your Right to Self-Defense

Thursday, May 17, 2018

Oregon: NRA Files Comments Against Initiative to Restrict Your Right to Self-Defense

On May 15th, NRA filed comments with the Oregon Secretary of State opposing the proposed ballot title for Initiative Petition 44, which seeks to restrict the self-defense rights of Oregon’s law abiding citizens.  The state Attorney ...

Guide To The Interstate Transportation Of Firearms

Gun Laws  

Thursday, January 1, 2015

Guide To The Interstate Transportation Of Firearms

CAUTION: Federal and state firearms laws are subject to frequent change. This summary is not to be considered as legal advice or a restatement of law.

News  

Friday, April 27, 2018

NRA Statement on Yeti

The National Rifle Association released the following statement from in response to Yeti’s inaccurate statements:

Swiss Gun Rights Supporters Refuse to Capitulate to International Gun Controllers

News  

Friday, May 11, 2018

Swiss Gun Rights Supporters Refuse to Capitulate to International Gun Controllers

As NRA-ILA reported on April 27, peaceful Switzerland is in the crosshairs of international and domestic gun control advocates who are intent on abolishing the idyllic nation’s tradition of an armed citizenry. Using the 2017 changes to ...

Dick’s Keeps Digging

News  

Friday, May 4, 2018

Dick’s Keeps Digging

The first law of holes, sometimes attributed to cowboy philosopher Will Rogers, suggests, “If you find yourself in a hole, stop digging.” 

MORE TRENDING +
LESS TRENDING -

More Like This From Around The NRA

NRA ILA

Established in 1975, the Institute for Legislative Action (ILA) is the "lobbying" arm of the National Rifle Association of America. ILA is responsible for preserving the right of all law-abiding individuals in the legislative, political, and legal arenas, to purchase, possess and use firearms for legitimate purposes as guaranteed by the Second Amendment to the U.S. Constitution.