U.S. Rep. Blaine Luetkemeyer (MO-3), a former bank examiner, today called Executive Branch attempts to shut down entire portions of the private sector based on what it deems to be morally unacceptable under the auspices of Operation Choke Point “an indefensible and irresponsible approach to regulation.”

Following is Luetkemeyer’s opening statement delivered during today’s hearing of the House Financial Services Committee Subcommittee on Oversight and Investigations in which witnesses from Department of Justice (DOJ), Federal Reserve Board, Federal Deposit Insurance Corporation and Office of the Comptroller of the Currency testified on Operation Choke Point:

“Thank you, Mr. Chairman, for allowing me to participate today.

Operation Choke Point takes a new approach to banking supervision: if you don’t like a given industry, bend your authorities and force that industry out of the financial services space, making it impossible to survive.

How does it work? The DOJ staff the conceived of Operation Choke Point summed it up in a November 5, 2012, memo to Stuart Delery: ‘Banks are sensitive to the risk of civil/criminal liability and regulatory action.’ In other words, the DOJ can intimidate banks into doing what it wants by threatening them with subpoenas and colluding with their regulators.

Since last August I’ve met with some of our regulators and even one of the witnesses on today’s panel. In each of those meetings, the regulators agreed that casting a wide net and targeting legal industries is inappropriate. But, despite that sentiment, Operation Choke Point continues.

I’m troubled that requests I’ve made for cooperation over the past year have fallen on deaf ears. But through my End Operation Choke Point Act, financial institutions will be granted the safe harbor necessary to serve legally-operating customers. Equally important: the legislation will ensure that DOJ will not be able to act unilaterally in broadly attacking legal industries.

Mr. Chairman, I look forward to the discussion on what I find to be an indefensible and irresponsible approach to regulation."

Luetkemeyer has led the national charge against Operation Choke Point since learning the FDIC loaned examiners to the DOJ in a hostile attempt to take down non-depository lenders despite the fact that they are legally-operating, licensed businesses.  Luetkemeyer’s legislation also intends to ensure that financial institutions have the security and ability to return to the business of offering products and services to a variety of industries including ammunition sales, fireworks sales and pharmaceutical sales. Luetkemeyer also successfully passed an amendment in the House that would cut off funding for Operation Choke Point for a year.