The FDIC’s ‘Operation Chokepoint’ Settlement Doesn’t Make Victims Whole

The Federal Deposit Insurance Corporation (FDIC) just settled a longstanding lawsuit over the agency’s participation in Operation Chokepoint, a nefarious plot launched during the Obama administration to cut off banking services to legitimate businesses the Administration wanted to punish without any statutory basis to do so. It is always welcome news when the government admits wrongdoing, especially when their actions were as egregious as they were in this case. But the work is far from done to ensure that government rights the wrongs that were committed and this type of government tyranny never happen again.

Launched in 2012 and publicly disclosed in 2013, Operation Chokepoint was a rogue effort by the Department of Justice (DOJ), the Office of the Comptroller of the Currency (OCC), Federal Deposit Insurance Corp. (FDIC) and the Consumer Financial Protection Bureau (CFPB) to pressure financial institutions to cut-off banking relationships with legally operating businesses the Obama Administration felt were unsavory and politically unfavorable but not illegal, including payday lenders and gun stores among others.

Click here to read more of this RealClear Markets article by C. Boyden Gray.