Explore The NRA Universe Of Websites

APPEARS IN News

"Choke Point" Hearings Yield Predictable Responses From FDIC Chairman

Friday, March 27, 2015

"Choke Point" Hearings Yield Predictable Responses From FDIC Chairman

Last year, we began reporting on the Obama administration’s "Operation Choke Point" and the use of federal financial services regulators to harass and intimidate banks and financial service providers who maintain relationships with legal but so-called "high risk" merchants or businesses. By leaning on the banks, the regulators hope to cause them to sever relationships with these businesses, thereby choking off their cash flow and forcing them out of the market. 

These businesses include retailers of firearms and ammunition, a number of which have found their banking relationships abruptly severed with little or no explanation and without reference to anything the individual businesses did or did not do.  Earlier this year, a congressional report based on examination of nearly 900 internal DOJ documents found that the operation's adverse effect on legitimate businesses was not merely an unintended side-effect but the outcome of a deliberate attempt to target entire business sectors that, while legal, were deemed objectionable by regulators.

One of the main federal entities being used to "choke" firearm businesses is the Federal Deposit Insurance Corporation (FDIC).  The FDIC was created during the New Deal in 1933 to guarantee the security of bank deposits, and has extensive supervisory and examination authority over banks and the many federal laws that banks must follow.

As we reported last October, a coalition of congressional representatives led by Rep. Blaine Luetkemeyer  (R-Mo.) had requested internal investigators at the Department of Justice (DOJ) and the Federal Deposit Insurance Corporation (FDIC) to conduct formal inquiries into Operation Choke Point, as well as any officials and staff involved in the program.

On March 24, 2015, the Committee on Financial Services’ Oversight and Investigations Subcommittee held a hearing entitled “The Federal Deposit Insurance Corporation’s Role in Operation Choke Point” where the sole witness was the Honorable Martin J. Gruenberg, Chairman, Federal Deposit Insurance Corporation. 

U.S. Rep. Sean Duffy (R-Wis.), Chairman of the Oversight and Investigations Subcommittee, asked a series of probing questions and referenced multiple supporting FDIC documents revealing that ammunition and firearm sales and dealers had, in fact, been targeted. 

“The bottom line is, you’re putting innocent people out of business and all of the people at the FDIC who are implementing this program still work there. They haven’t been fired and they haven’t been reprimanded,” Rep. Duffy said.  “These folks have no place in government – and if you allow them to stay - you have no place in government,” Duffy concluded.

Several other members, including Rep. Luetkemeyer, asked questions pertaining to Operation Choke Point as a whole.  

Unfortunately, though predictably, Gruenberg's responses were vague and non-committal, and displayed a disregard for the law-abiding businesses that are being forced out of existence due to their loss of financial support from banking institutions.  The FDIC has clearly exerted pressure on financial institutions to cease relationships with what the FDIC deems as “prohibitive businesses.” 

This is another clear example of overreach, by another Obama appointee, intended to curtail the Second Amendment.

In order to fight such abuse, Rep. Luetkemeyer has re-introduced NRA-supported H.R. 766--the “Financial Institution Customer Protection Act”. This legislation would institute numerous reforms to bring more transparency and accountability to federal oversight of banks; all aimed at preventing the sort of unchecked abuse of discretion at the heart of Operation Choke Point.

Please contact your U.S. Representative and ask him or her to SUPPORT H.R. 766

You can contact your U.S. Representative by using our "Write Your Lawmakers" tool at www.NRAILA.org, or by phone at (202) 224-3121.

TRENDING NOW
“Fact Checker:” Joe Biden’s “Gun Ban” Not a Gun Ban Because Some Guns Wouldn’t Be Banned

News  

Monday, July 15, 2019

“Fact Checker:” Joe Biden’s “Gun Ban” Not a Gun Ban Because Some Guns Wouldn’t Be Banned

Facebook has teamed up with what it calls “third-party fact-checkers” to punish users of its platform that post information embarrassing or inconvenient to the political outlook of its principals. Yet like most sources of what ...

Hollywood Fantasy v. Reality on Firearm Suppressors

News  

Monday, July 15, 2019

Hollywood Fantasy v. Reality on Firearm Suppressors

It’s no secret that Hollywood has a very loose relationship with reality.  The movie industry, after all, is based on fantasy and escapism, and that’s not necessarily a bad thing.  If someone wants to forget ...

Oregon: Initiative Filed to Restrict Self-Defense

Friday, July 19, 2019

Oregon: Initiative Filed to Restrict Self-Defense

On July 18th, Initiative Petition 40​ was filed in Oregon to restrict the Second Amendment rights of law abiding adults by imposing a broad, one-size-fits-all method of storing firearms.  This egregious attack on our freedoms uses virtually ...

Presidential Pretender Who Campaigned on Gun Control First to Call It Quits

News  

Monday, July 15, 2019

Presidential Pretender Who Campaigned on Gun Control First to Call It Quits

On Monday, Eric Swalwell became the first of the many pretenders for the Democrat presidential nomination to bow (or perhaps slink) out of the race. The U.S. Congressman from California’s 15th District had tried to distinguish himself from ...

NRA Statement On Virginia Special Session

News  

Tuesday, July 9, 2019

NRA Statement On Virginia Special Session

FAIRFAX, Va.–   The interim executive director of the National Rifle Association Institute for Legislative Action, Jason Ouimet, released the following statement today regarding the special session in Virginia:  "The National Rifle Association has a long ...

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.

Hawaii: Governor Ige Signs Anti-Gun Legislation

Wednesday, July 10, 2019

Hawaii: Governor Ige Signs Anti-Gun Legislation

On July 9th, Governor David Ige signed the final remaining anti-gun bill awaiting his consideration, Senate Bill 600. This comes on the heels of him signing Senate Bill 1466 on June 27th. 

California: Injunction Request to be Filed in Lawsuit Challenging California Ammo Law

Wednesday, July 3, 2019

California: Injunction Request to be Filed in Lawsuit Challenging California Ammo Law

CRPA, with the support of NRA, challenged the ammunition background check law in court months ago with the filing of the Rhode v. Becerra case. The lead plaintiff in the case is Olympic gold medalist shooter ...

California: City of San Diego Considers Gun Control Ordinance

Friday, July 12, 2019

California: City of San Diego Considers Gun Control Ordinance

San Diego City Attorney, Mara Elliott has asked the City Council to consider a draft ordinance that would require mandatory locked storage of firearms in the home and would propose a conflicting law regarding the reporting of ...

Recent Poll Shows Gun Control Not as Popular as Some Would Like to Believe

News  

Monday, July 8, 2019

Recent Poll Shows Gun Control Not as Popular as Some Would Like to Believe

A recent Morning Consult/POLITICO poll, conducted immediately prior to the recent  Democratic debates and gathering responses from 1,991 registered voters, asked about views toward the candidates, issues of potential importance in the election, voting intention, and ...

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.