Dealing with the current administration can feel sometimes, even as a member of Congress, like banging your head against a bureaucratic wall standing in the way of good government. So, you can imagine that I was very pleased when I recently learned that a recent effort by me to keep the government from inappropriately interfering in the private sector has moved a step in the right direction.
For the last few months, I have written letters, questioned government officials, and poured over hundreds of documents related to Operation Choke Point. Operation Choke Point refers to an organized attempt by the Obama Administration, namely the Department of Justice (DOJ) and the Federal Deposit Insurance Corporation (FDIC), to bully and intimidate financial institutions from offering financial services to certain licensed, legally-operating industries the government doesn't like in an attempt to choke off those industries from our country's banking system.
The administration is doing this, because it has no firm legal ground to shut down entire sectors of the economy with which it disagrees, so, instead, it is intimidating banks and credit unions into doing its dirty work. As you may have guessed, in this day and age it is really difficult for a business to function without access to financial products and services.
While this government operation was first aimed at non-depository lenders, other areas of the private sector economy became targets of the DOJ and FDIC, too. The government even had a secret list it circulated among its officials of businesses deserving what it terms "heightened scrutiny" for regulators including, but not restricted to: ammunition and firearms sales; fireworks sales; tobacco sales; coin dealers; debt collectors; and pharmaceutical sales.
Then, just a couple of weeks ago, the FDIC announced that the list of industries targeted for "heightened scrutiny" was being rescinded and would no longer be used. In other words, after extensive pressure from Congress, the bureaucracy backed off its attack on legitimate businesses with which this administration simply doesn't like.
While this is a positive step forward, there is certainly more that needs to be done to ensure an administration never again tries to become the arbiter of whether entire legal, licensed sectors of our economy have the moral right to exist. That is why I remain committed to moving forward with my legislation to restore the balance between financial institutions and regulators and protect private industry from organized bureaucratic intimidation.
My End Operation Choke Point Act, H.R. 4986, creates a safe-harbor for financial institutions, including banks and credit unions, to promote nondiscriminatory access to financial products and services provided the merchant is licensed, registered as a money services business, or has obtained a reasoned legal opinion demonstrating the legality of the business. The safe-harbor does not require a financial institution to do business with any merchant and does not place the burden of determining the legality of business with the financial institution. It simply says the government can't prevent a bank or credit union for serving a licensed, legally-operating business customer. The legislation also seeks to reign in the abusive misuse of Justice Department subpoena authority by changing the regulatory powers granted to DOJ under the Financial Institutions Reform, Recovery, and Enforcement Act of 1989.
I have received lots of support from folks across the 3rd Congressional District who were aware of the perils of Operation Choke Point and added their voices to the national outcry over this shameful initiative. Please know that I will remain vigilant that progress continues in a positive direction while I work to pass legislation that would end covert programs like Operation Choke Point.
U.S. Rep. Blaine Luetkemeyer, R-Mo., represents the state's 3rd District, which includes Jefferson City. His local office can be reached at 573-635-7232.
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