Skip to comments.‘High risk’ label from feds puts gun sellers in banks’ crosshairs, hurts business
Posted on 05/20/2014 12:13:38 AM PDT by stevie_d_64
Gun retailers say the Obama administration is trying to put them out of business with regulations and investigations that bypass Congress and choke off their lines of credit, freeze their assets and prohibit online sales.
Since 2011, regulators have increased scrutiny on banks customers. The Federal Deposit Insurance Corp. in 2011 urged banks to better manage the risks of their merchant customers who employ payment processors, such as PayPal, for credit card transactions. The FDIC listed gun retailers as high risk along with porn stores and drug paraphernalia shops.
Meanwhile, the Justice Department has launched Operation Choke Point, a credit card fraud probe focusing on banks and payment processors. The threat of enforcement has prompted some banks to cut ties with online gun retailers, even if those companies have valid licenses and good credit histories.
This administration has very clearly told the banking industry which customers they feel represent reputational risk to do business with, said Peter Weinstock, a lawyer at Hunton & Williams LLP. So financial institutions are reacting to this extraordinary enforcement arsenal by being ultra-conservative in who they do business with: Any companies that engage in any margin of risk as defined by this administration are being dropped.
A Justice Department representative said the agency is conducting several investigations that aim to hold accountable banks who are knowingly assisting fraudulent merchants who harm consumers.
(Excerpt) Read more at washingtontimes.com ...
The best part:
The departments of Commerce, Justice, Labor, Education, Homeland Security and Justice along with the Internal Revenue Service, the Securities and Exchange Commission, the Secret Service, the FBI, the Social Security Administration and the Federal Trade Commission. Have created a nice new regulatory interagency task force called the Financial Fraud Enforcement Task Force, or FFETF coming to the back of a windbreaker near you...
Like I said on the Texas board, I hope they are wearing baby blue helmets for easy identification...Don’t want them to get mixed up with the other “riff-raff”...
The worst part was that after forcing banks to make bad loans in minority ghettos they turned around and accused them of taking advantage of minority buyers.
Well then, NATO and our State Department should be at the top of the risk list, since they coordinated through Hillary Clinton gun/missile/chemical walking to Egypt and Syria Rebels. Very risky business, indeed.
The ATF should be next on the list, considering how many guns and other assault weapons (grenades, etc.) they passed into Mexico in an actual act of war, which Mexico turns a blind eye too. Another very risky business, also.
And next on the list should be all illegal immigrants and the businesses employing them...what’s more risky to FDIC than illegal non-American citizens and employers who have them on their payrolls, who have already violated Federal Laws?
I can’t wait until the government is regulating the Internet. They’ve done such a great job preserving individual liberty to date.
This is a defacto back door registration arm wrestling. If the gun dealers do no peovide data of buyers to feds via banks, they get pushed out of business.
The government pushes drugs and porn as a way to make war on any legitimate business strategy.
It is the biggest Fed gov cop agent betrayal ever. These people are traitors to their trusting stewards.
It was absurd. And no one had the courage to speak the truth.
As soon as a named, particular bank, is revealed to be picky about who it takes as a legitimate customer, as with a gun business, that bank can kissitsassgoodbye in the neighborhood. That kind of krap won’t be tolerated by paying customers. Bank records security is extremely important as well as the need to serve the whole community. Reminds me of the time my own Mom dam near shut down a bank because a mouthy teller told someone how much money another depositer had. She had the whole town pulling money out. The bank pres. begged her for years to come back——didn’t happen. Shucking legitimate customers would be suicidal.
Not investment or business advice but thinking out loud here, and as always professional business types chime in... This move may move firearm shops to float commercial paper notes to private individuals at a higher interest rates (potentially) then they would pay at a bank and they would unsecured. Can you think of fellow Freeper's that would enter in such a financial transaction with these type of establishment(s)? IMHO they may have people beating down their doors to help out....
Don't believe me? Just ask Eric Holder for confirmation...
Unless this bastard is impeached after the mid-term elections, its all over. Even if the GOP takes over every seat in Congress, it is meaningless if he is still sitting there as he ignore any law that is unsuited for his agenda.
He is an out-and-out unconstitutional tyrant.
If he isn’t removed from office, we take all our founding documents and use them for toilette paper. If he can;t be impeached, NOBODY can EVER be impeached for ANYTHING.
First they did it to online poker sites (which are legal under federal law). Then porn and drug paraphernalia, again legal businesses. Any surprise they are doing it to gun and ammo dealers?
He who does not bare the number and ideology of the beast will be persecuted.
In the news today:
“It was absurd. And no one had the courage to speak the truth.”
The banks couldn’t because they had become owned by the government, and nobody was going to give a voice to the middle-class neighborhoods trashed as the gibsmedats “bought” then defaulted on homes in their areas...
Bank of America
But then again their organization has a history of coddling illegals and allowing the to setup accounts to funnel earnings directly to foreign banks for family to draft from for obvious reasons...
This is yet only another dig by this bank against everyone, not already in their clutches...”customers”...