Posted on 12/11/2014 11:44:48 AM PST by 2ndDivisionVet
Senior FDIC officials must be held accountable for banking regulators’ “unethical” and “illegal” actions against legitimate businesses that are out of favor with the Obama administration, a congressman with a background in banking said today.
In a letter to Martin Gruenberg, chairman of the Federal Deposit Insurance Corporation, Rep. Blaine Luetkemeyer, R-Mo., says he wants a full review of all FDIC employees involved in Operation Choke Point.
Luetkemeyer, a rising member of the House Financial Services Committee, names five officials as “implicated in this unsavory affair,” and adds that “to allow these individuals to go without penalty would be unjust.”
The Daily Signal reported Monday that the secretive initiative, orchestrated by the Justice Department, was the subject of a second scathing investigative report by the House Oversight and Government Reform Committee. The panel’s report reprints emails between various FDIC officials, including those named in Luetkemeyer’s letter.
Luetkemeyer, a leader in the fight to shut down Operation Choke Point, met yesterday with Gruenberg. They discussed details of the House committee’s 20-page report on the FDIC’s efforts to pressure banks into cutting ties with payday lenders and other businesses that the Obama administration finds objectionable.
FDIC officials “lied” and “misled” Congress about the secretive operation, the Missouri Republican says in his letter.
The FDIC is the primary agency responsible for regulating and auditing more than 4,500 U.S. banks.
In his meeting with the FDIC chairman, Luetkemeyer summarizes in the letter, he demanded that staffers who participated in Choke Point “be held accountable” for allowing personal and political views to interfere with the regulatory agency’s responsibilities.
He writes:
There is neither doubt nor denial that numerous members of your senior staff have allowed personal and political views to interfere with the important work of the FDIC. Their actions have not only called into question their ability to appropriately carry out their duties, but also have exposed your entire agency to what many of your staff would refer to as significant ‘reputational risk.’ You must act swiftly to end this unprecedented and, in my opinion, illegal program and send the message that this behavior is inappropriate and will not be tolerated under your leadership.
By “reputational risk,” Luetkemeyer was referring to a list originating within the FDIC that categorizing certain industries as risks to the banking industry. The goal, as part of Operation Choke Point, was to encourage banks to end relationships with customers engaged in those enterprises, choking them off from their financial life blood.
Republicans have criticized federal regulators and government lawyers under Attorney General Eric Holder for associating legal enterprises such as firearms and ammunition merchants and home-based charities with blatantly illegal or offensive industries such as Ponzi schemes and pornography.
Republicans have criticized federal regulators and government lawyers under Attorney General Eric Holder for associating legal enterprises such as firearms and ammunition merchants and home-based charities with blatantly illegal or offensive industries such as Ponzi schemes and pornography.
Of Monday’s report by the House panel, which unearthed emails between FDIC officials who sought to ensure banks “get the message” about the businesses they don’t like and cut credit or close accounts, Luetkemeyer said yesterday, “our worst fears have been validated.” He added in a statement:
The report clearly shows that senior members of the FDIC lied to me, to congressional staff, to other members of Congress, and in testimony to several House committees. Not only that, the communications contained in the report show that the FDIC is inserting personal views into banking supervision, which is unethical and completely unacceptable.
Luetkemeyer urges Gruenberg to use his authority to alter and improve the FDIC’s examination process to create more transparency and reign in “vigilante activists.”
He points Gruenberg to his own legislation that grew out of Operation Choke Point. Called the Financial Institution Customer Protection Act, the bill would prohibit banking regulators from suggesting, requesting or ordering a financial institution to terminate a banking relationship without “material reason.” It states that ‘reputational risk’ alone is not reason to order accounts to be terminated.
The FDIC has not responded to The Daily Signal’s request for comment on the report by the House committee. In a press release Monday, however, a spokesman said:
It is the FDIC’s policy that insured institutions that properly manage customer relationships are neither prohibited nor discouraged from providing services to any customer operating in compliance with applicable law. The FDIC has reiterated this policy to our bank supervisors and we encourage banks to report to FDIC management, the ombudsmen, or the inspector general if they feel this policy is not being followed.
Luetkemeyer, who previously worked as a bank regulator, said that Congress will not tolerate actions by a federal agency as described in the House report, and that he will continue to hold the FDIC accountable.
“Throughout my more than 35 years in the banking industry, I have always had the utmost respect for the FDIC and the manner in which it carries out its mission,” the congressman said in his prepared statement. “That respect has been greatly diminished.”
Read the full letter here: (LETTER-AT-LINK)
Coin Dealers, WHAT THE F-WORD!!!!!!
Seriously are stamp collectors next?
Folks, these guys are trying to take our nation down.
Please keep that in mind.
This is not to protect a single individual in this nation.
Don’t be fooled by this. These are Marxists on elephant walk...
Given the weasel words “but not limited to”, stamp collectors are included. Any business owned by or run by anybody conservative probably included as well.
Someone should be held accountable.
These businesses, the owners, shareholders and employees are entitled to equal protection and onky the congress can regulate business under the commerce clause.
Funny, in my experience, some of those on the list that should have been isolated and shut down appeared to have proliferated, while others were restricted during this “operation”.
Namely, the scams appeared to have proliferated while gun shops were restricted...I recall reading an article here on FR where a gun store owner was a victim of this “operation”.
Can’t have you trying to maintain/keep any wealth...
Their “get rich scheme” or “pyramid” is someone else’s beneficial marketing program, as well.
The business owners were harmed, but so were there employees.
I personally lost 25% of my income to this illegal attack on business
Sounds like you have both grounds and standing to sue. And you also have names.
There you go.
Can’t have laws to make commerce regular for everyone except you.
That’s almost as terrible as waterboarding
“Coin Dealers, WHAT THE F-WORD!!!!!!”
Maybe it would be a good thing if it got that a$$hole has been actor William DeVane off the TV hawking gold and silver at every commercial break. Talk about deceptive advertising!
Since racist material is on the list, I expect that the FDIC will be going after The Final Call?
If they want to disallow these businesses,
PASS LEGISLATION.
It’s as simple as that.
Otherwise, MYOB.
I can’t breath
I would guess that “The Final Call” is a non-white racial publication,
so, no, only white “racists” are targeted,
but you knew that.
Oh, and don’t expect anyone on the left to ever be ashamed of their hypocrisy.
When I worked for the government, I was involved in awarding and overseeing grants and contracts. There are enough rules to wall paper a block of mansions.
When presidents came in with staff and ordered me, via down the chain to do something illegal - like award a non-competitive contract to his pal or home state hospital/research center - I would not do it. I was the responsible official for obeying the law and I did not care who told me to break the law, I would not do it.
I guess things have changed at FDIC and other agencies.
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