Posted on 01/30/2015 9:17:46 AM PST by right-wing agnostic
In what seems to be a retreat from its Operation Choke Point initiative, the FDIC has announced new regulatory guidance that instructs banks to judge their relationships with their customers on a case-by-case basis, rather than refusing to provide banking services to entire categories of industries. From the Press Release:
The Federal Deposit Insurance Corporation (FDIC) issued a Financial Institution Letter today encouraging supervised institutions to take a risk-based approach in assessing individual customer relationships, rather than declining to provide banking services to entire categories of customers without regard to the risks presented by an individual customer or the financial institution’s ability to manage the risk.
The FDIC also reinforced the agency’s policies on managing customer relationships to examiners and other supervisory staff. Financial institutions that properly manage customer relationships and effectively mitigate risks are neither prohibited nor discouraged from providing services to any category of customer accounts or individual customers operating in compliance with applicable laws. FDIC examiners must provide notice in writing for any case in which an institution is directed to exit a customer relationship.
(Excerpt) Read more at washingtonpost.com ...
Sort of.
My guess is the FDIC figures the message was sent with the previous guidance, now they feel comfortable in backing away to forestall a messy Congressional investigation knowing that lending institutions will continue discriminating based on category (gun shops) despite the new guidance.
I wonder how any law suits were being lined up? I know of a gun shop in Katy, Texas that was denied a loan and were on the edge of being forced to close (within a day) and private funding came forward. Oddly, this gun shop was thriving, had something like 30 employees, had no financial issues but were OPENLY at odds with this administration. They have a marque that is always displaying their snarky comments about the gov. (as evidenced by my tagline!) I thought that was why they were targeted until I read about Choke Point.
FDIC retreats on Operation 12 Ga. Choke Point `n Shoot?
ther fixed it
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