luetkemeyer.house.gov

Luetkemeyer, Blaine

Washington, August 7, 2014 -

U.S. Rep. Blaine Luetkemeyer (MO-3) today encouraged the Federal Deposit Insurance Corporation (FDIC) to fully halt organized government attempts to shut down entire portions of the private sector, known as Operation Choke Point, after the agency recently rescinded its lists naming specific industries deserving of “heightened scrutiny.”

In a letter to FDIC Chairman Martin Gruenberg, Luetkemeyer acknowledged the agency’s removal of lists naming certain industries deserving of increased scrutiny from financial institutions regulated by the FDIC. Those lists included industries such as firearms sales, ammunition sales, fireworks sales and tobacco sales. Luetkemeyer noted there is more to be done to ease the concerns of legitimate business owners previously targeted by Operation Choke Point.

“I am pleased that you have taken the first step in ensuring that all of these heightened scrutiny lists generated by FDIC staff are removed from guidance, and request you ensure that similar lists are not used in future presentations by any FDIC personnel,” said Luetkemeyer. Luetkemeyer has led the national charge against Operation Choke Point since learning of the initiative and FDIC’s actions to loan examiners to the Department of Justice in a hostile attempt to take down non-depository lenders they believe have no moral right to exist. “Additionally, and most importantly, your examiners must begin to conduct bank examinations on a customer-by-customer basis rather than an industry-by-industry basis as has been done in the recent past.”

While pleased with the FDIC’s initial move, Luetkemeyer remains committed to monitoring the agency’s efforts with Operation Choke Point and will continue to seek action on his legislation to restore the balance between financial institutions and regulators and protect private industry from organized bureaucratic intimidation and regulation.

Specifically, Luetkemeyer’s bill 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. The legislation also seeks to reign in the abusive misuse of Justice Department subpoena authority by changing the manner in which DOJ can seek a subpoena under the Financial Institutions Reform, Recovery, and Enforcement Act of 1989.

NOTE: A copy of Luetkemeyer’s letter is attached.