Representative Blaine Luetkemeyer (R-Mo.) recently wrote a letter demanding the FDIC do more to end Operation Choke Point. The letter acknowledged the agency’s recent rescission of its list of specific industries that it previously considered deserving of heightened scrutiny by financial institutions, adding there was more to be done to ease concerns of legitimate business owners previously targeted. The letter encouraged the FDIC to direct its examiners to conduct bank examinations on a customer-by-customer basis, rather than industry by industry.
The FDIC took a positive step when it removed many high risk merchant categories, a move that is likely to deflate Operation Choke Point’s momentum. This letter encourages the FDIC to continue in this direction and increase its efforts to counteract the initiative.
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