In the case of gun dealers, Issa’s committee found that the FDIC in some cases reached “memorandums of understanding” with banks that explicitly prohibited them from dealing with these companies.
The House Oversight and Government Reform Committee released a report Monday that said the Federal Deposit Insurance Corporation unfairly treated gun dealers and other companies as illegal entities, and convinced banks to stop doing business with them under the Obama administration’s Operation Choke Point.
Choke Point is a program run by the Departments of Justice and Treasury that is ostensibly aimed at making sure illegal businesses don’t have access to the U.S. financial system. But many Republicans have said the Obama administration is using it to create hurdles for companies it doesn’t support, such as gun dealers and payday lenders.
he secretive program is rarely cited by banks as they close down banking services to companies. But many have said they believe they are victims of Choke Point, such as the Oregon gun maker who was told this year it no longer had access to credit card processing services.
The House oversight committee, run by Rep. Darrell Issa (R-Calif.), has been looking at Operation Choke Point for the last year, and said in its final report that the initiative has prompted banks around the country to end relationships with “high-risk” companies identified by the government. But those companies, which FDIC encouraged banks to abandon, including many legal businesses, such as gun and ammo dealers, coin dealers and others.