Group of professionals discuss finance

Breaking news and expert analysis on legal and compliance issues

[Back To Home][Back To Archives]

From Banking and Finance Law Daily, February 4, 2016

House votes to kill Operation Choke Point

By J. Preston Carter, J.D., LL.M.

The House of Representatives today passed “The Financial Institution Consumer Protection Act of 2015” (H.R. 766), a measure intended to kill the Department of Justice program known as “Operation Choke Point.” Despite opposition by the Obama Administration and a number of consumer advocacy groups (see Banking and Finance Law DailyFeb. 3, 2016), the measure was approved by a vote of 250-169.

A Financial Services Committee press release quotes the bill’s sponsor, Rep. Blaine Luetkemeyer (R-Mo), as saying that passage of the measure is the first step toward ensuring that “federal banking agencies and DOJ can no longer intimidate financial institutions from offering financial services to licensed, legally-operating businesses that have been targeted not because of potential wrongdoing, but because of personal and political motivation.”

Proponents of the Operation Choke Point program contend that it was created to “choke out” companies that posed a high risk of payment fraud, money laundering, or other abuses by denying them access to the banking and payments system. Critics of the program claim that it pressured banks to deny services to legitimate businesses because they were engaged in activities deemed by regulators to be undesirable.

MainStory: TopStory BankingOperations OversightInvestigations PrudentialRegulation

Back to Top

Banking and Finance Law Daily

Introducing Wolters Kluwer Banking and Finance Law Daily — a daily reporting service created by attorneys, for attorneys — providing same-day coverage of breaking news, court decisions, legislation, and regulatory activity.

A complete daily report of the news that affects your world

  • View full summaries of federal and state court decisions.
  • Access full text of legislative and regulatory developments.
  • Customize your daily email by topic and/or jurisdiction.
  • Search archives for stories of interest.

Not just news — the right news

  • Get expert analysis written by subject matter specialists—created by attorneys for attorneys.
  • Track law firms and organizations in the headlines with our new “Who’s in the News” feature.
  • Promote your firm with our new reprint policy.

24/7 access for a 24/7 world

  • Forward information with special copyright permissions, encouraging collaboration between counsel and colleagues.
  • Save time with mobile apps for your BlackBerry, iPhone, iPad, Android, or Kindle.
  • Access all links from any mobile device without being prompted for user name and password.