In an earlier article I touched on the withering attack on the 2nd Amendment that has subsided to a “dull throb” for the moment. A large portion of that is “Operation Choke Point,” the regulatory “assault” instituted by the Federal Government to force the banking industry to deny services to industries, not on the basis of illegality, but incorrectness as judged by the administration.
This cabal is represented by the Office of the Comptroller of Currency, the Federal Reserve, and the FDIC under the “ringmaster” of the Department of Justice. The aforementioned agencies have regulated the banking industry by using their positions as directed by the administration to sever businesses from their connections with the banks. Specifically, the firearms industry, to include (in order) first firearms manufacturers, and the complementary industries that are synergistic with those manufacturers, namely ammunition manufacturers and accessory products for firearms.
The regulators mentioned have used their authority to browbeat the banks into submission and deny businesses in the firearms industry such things as lines of credit, as well as forcing the closure of business and purchasing accounts. Any banks that refused to institute any of these measures against their clients then opened themselves up to inspections, scrutiny, examinations, and harassment from a regulatory perspective. The “cover” phrase for the regulatory agencies: “To promote bank safety and soundness.”
“Reputation risk” is the term used by the regulating industries, in essence, to blackball the banks by stating their clients (in this case businesses involved in the firearms industry) were increasing risk for the banks and that the banks themselves were absorbing “negative publicity.” The regulators insisted they had an obligation to “protect” the banking industry overall by eliminating the potential for the absorption of bad publicity by one of its members due to negativity associated with that third party. In essence, guilt by association, and in this case guilt not by a court of law as a verdict for a crime, but a bureaucratic regulator operating at the behest of the Obama administration, making its own restrictive “laws” to inhibit legal businesses.
These procedures completely subvert rule of law. The reputation risk concept enables these regulators to force financial institutions to close any account and cease business with any business they deem to be either “improper” or “unsavory.” This is a method to deny the businesses the financial support structure they are dependent upon to conduct their affairs and eventually to force the businesses to close. If the bank refuses to turn on the client, then the bureaucracies will attack the bank and punish it.
Some of the largest targeted sectors are pawn shops, tobacco outlets, gun dealers, and check-cashing services. There are reasons these businesses are listed as “unsavory.”
The pawn shops do not allow for complete accountability on what is sold and what is purchased for the government to track.
Tobacco outlets are along lines of the recent “politically correct” attacks on smokers and the attempt to stamp out smoking in general.
Check cashing services usually enable people to cash their paychecks at a usurious rate regarding the fee; however, it allows for the circulation of cash in the hands of those who do not possess a bank account.
Gun dealers: the reason is self-explanatory.
All of this is about control and dominion, the erosion of personal freedoms, and the move toward totalitarian suppression of all liberties and complete monitoring over any and all activities of the average citizen.
All of these agencies have exceeded the authority granted to them under normal banking rules and regulations. Rather than taking care of the individual depositor and the business, they are forcing the paradigm of the administration’s platform and squelching individual liberties. It is an unbridled, unchecked abuse of Executive power, operating completely outside of the rule of law and answering only to the President.
One of the biggest problems underlying all of this is precedent. Once precedent is established, it is a great deal harder to enforce the law on the lawbreakers, and additionally they can use their modus operandi in other areas and expand their power and control. The American Revolution was a dream that happened once. In Egypt they ousted Morsi, arrested or killed the Muslim Brotherhood, and took their Constitution and their country back. Won’t happen here until people realize exactly how far down the road we are and what we have lost. We’ve broken faith with God and with one another, and the country is in such shambles that it may not ever rise again.
Other decrees by the Obama administration against those he wants eliminated and out of business are common, one example: http://www.practicalmachinist.com/vb/gunsmithing/putting-gunsmiths-out-business-itar-261293/
The law is no longer what it says, it is what someone in high places wants it to be regardless of what it says.
Chokepoint was used to destroy the payday loan business. The politicians distorted the PDL interest rates to make their case and grandstand. They use mortgage amortization to calculate a loan that last 2-4 weeks. If a friend borrowed $100 and greed to pay back $110 in two weeks it seems reasonable. Amortize that loan on a yearly calculation as though it were a mortgage and the rate is 300% plus.
Now that the majority of PDLs are out of business, the banks that supported Obama (and will support Hill) are reaping in the NSF fees for bounced checks because the only alternative is the friendly neighborhood loan shark.
Small banks were forced to raise lending standards on homes to the point where no one qualified post 2008. The OCC stated that banks that do not raise their standards will be held accountable during their annual review. The result, loans dried up and no one qualified for a home loan. Consequently, the OCC followed up with a memo to make more loans available through increased customer acquisition attempts. Still, no one qualified and standards were slowly reduced with OCC tacit approval.
The government has lost its way and has been on this path for decades. When Hillary wins the White House, what we have/are experiencing is a dress rehearsal for the main event.
IMO, the main reason for choke-point is to drive profits to major corporations. We have a Fascist state and it is supported by the Dem and Rep Party leadership. The corporations, especially with media, support the gov’t; the Government supports the major corporations with ever increasing regulations to drive out new, small, and medium business for takeover by the major corporations.
Kokoda. Bingo. The banks drive chokepoints in virtually every industry, with the goal of eliminating competition, and consolodating each industry into four or five publicly traded companies. Jim’s post about the beer companies the other day was a perfect example. As far as obama’s lawlessness, he was banking on an equally lawless administration following his. Looks like he’s in for a big surprise.