Update: 10/19/14: On September 1st, we ran this story about the abuses of Operation Choke Point. We are running it again based on a letter sent by thirty members of Congress to the Department of Justice demanding an “immediate investigation” into the DOJ’s own Operation Choke Point and those involved who are using it to attack enterprises the Obama administration opposes.
Operation Choke Point is being used to inappropriately target business models not supported by the administration and is politicizing the payment system and access to credit markets, according to the congressmen who signed the letter. They added:
The result is causing banks and payment processors to deny or terminate loans and restrict access to payment systems for law-abiding and legitimate businesses to avoid unwarranted investigations and legal actions by the Department of Justice … and federal financial regulators.
The Daily Signal has a more detailed account of the latest developments. The story below explains what has been going on.
by Sara Noble and Rosalie Hanson
The Department of Justice’s Operation Choke Point gives unlimited power to the executive branch to just shut down bank accounts of businesses at will! That means a business can’t run. It is what communists do.
It is a clearly anti-Capitalist initiative of the United States Department of Justice first announced in 2013. They are investigating banks in the United States and the business they do with payment processors, payday lenders, and other companies believed to be at higher risk for fraud, money laundering, and terrorist financing.
The executive branch gets to decide who the offenders will be outside any oversight by Congress.
They have gone way beyond their stated intents. It is being used to choke businesses they don’t like and banks they want to menace. It poses an existential threat to due process.
The program cuts off companies’ access to banking services without having to show that the targeted companies are violating the law. Innocent businesses are being made to suffer and perhaps fold. Businesses cannot survive without a bank to do business with.
Some of the merchant categories that the FDIC had listed until July 2014 as being associated with high-risk activity include, but are not limited to (until the FDIC revised the original policy in July 2014) these listed below, and of course they include firearms – what a great way to destroy the Second Amendment!
Who will get to decide what is a home-based charity or racist material or a travel club and so on? What will happen to banks who loan money to gun manufacturers? There are serious implications for our First Amendment.
Governor Huckabee described Operation Choke Point last evening on his Fox News Show.
This administration’s attack on Capitalism doesn’t end there. They have been extorting money from banks since Obama came into office. The collapse is the excuse even though the politicians contributed far more to the collapse.
There is hardly a month goes by where we don’t hear about a bank having to pay a hefty fine – extorted money by an overly-powerful government.
JP Morgan Chase was pushed by the government to buy corrupt companies that helped cause the 2008 meltdown. The government then extorted billions of dollars from them and gave it to Obama cronies.
The $13 billion dollar settlement agreed to by JP Morgan Chase was retribution for the economic collapse of 2008 – supposedly.
At the time of the 2008 collapse, JP Morgan was asked by the US government and Treasury Secretary Hank Paulsen to buy WAMU and Bear Stearns to stave off colossal systemic failure.
“Bear Stearns would have gone down if JP Morgan hadn’t acquired it,” Henry M. Paulson Jr., the former Treasury secretary, said in October on CNBC. “If that had happened, it would have been a real disaster,” said Mr. Paulson, who helped oversee both deals.
The government acknowledges that it urged Chase to buy the two banks.
Hank Paulson said that even though JP Morgan was “begged” to make the Bear Stearns and the WaMu acquisitions, the government did not make any guarantees on legal liabilities. “Jamie knew that at the time,” Paulson said.
Others remember it differently. JP Morgan was promised that if they bought WAMU and Bear Stearns, they would not pay for the crimes committed by the two entitites.
Whatever the case, JP Morgan was made to give $13 billion to the government for crimes committed primarily by WAMU and Bear Stearns. About 80% of the liabilities/mortgages were in fact owned by the two companies and not by Chase. Chase said that the FDIC backed the mortgages and bears the responsibility.
The government rejected that argument.
The 2008 economic collapse is being used by the Obama Administration to rob private corporations of earned profits so the government can redistribute the money to their favored constituents.
The DOJ forced the $13 billion dollar settlement on JP Morgan Chase investors, investors that include unions, seniors, and average working people. Investors are being hurt, not the people who caused the collapse. If they wanted to do that, they’d have to drag half of Congress into this.
The settlement creates a more threatening relationship by government towards private corporations.
Usually governments try to attract investment and encourage an environment in which private companies thrive, which in turn leads to economic growth, innovation, jobs and profits. The more predictable the environment, the more worthwhile the investment and risk for companies.
The JP Morgan settlement does the opposite.
The Obama Administration has been disrupting the relationship between government and private business for the last five years. The government abandoned investors for their favored unions in the auto bailout despite agreements to the contrary, they have given unearned grants and subsidies to Obama bundlers in the solar industry, they have bullied guitar companies, and have threatened insurance companies.
The government is again pressuring banks to give loans to minorities to buy homes they cannot afford.
The recent forced settlement with JP Morgan Chase is more of the same and epitomizes the new relationship between companies and the government. The government is now in control of private corporations when it chooses to be in control. The government now has the right to steal private property under the guise of fines, retribution, and criminal prosecution.
The government can beg you to buy up entities to save the country from economic collapse as they did with JP Morgan and then fine you for it.
Banks are easy targets and they now serve as another ATM for the government.
No one feels sorry for bankers and their investors.
The money did not go to the victims of the collapse, it went to Democratic donors and other special interest groups.
The government recently did the same thing to Bank of America. After demonizing banks with the public, they go in for the kill and extort money from them.
Radical Democrat activist groups stand to collect millions from Attorney General Eric Holder’s record $17 billion deal to settle alleged mortgage abuse charges against Bank of America.
There are $7 billion in political payoffs to Democrat special interests. The bank will also have to make billions in new loans while also building affordable low-income rental housing in those areas.
They will be providing legal aid for the poor and left-wing causes, some of which are to attack banks and Capitalism. The organizations include radical shakedown communists. ACORN is one of the recipients. Others are IOLTA, Operation Hope, Neighborhood Assistance Corporation of America whose director calls himself a “bank terrorist”, and National Community Reinvestment Coalition, among many others. These people will spend some of their riches to indirectly buy votes.
Bank of America is being forced to bankroll the same parasites that bled them for risky loans that caused the mortgage crisis.
The money does not go to the victims of the crisis. It was done without due process or evidence. Read about the details at Doug Ross, Director Blue.
This is a direct attack on Capitalism and is in no way set up to protect the American people though that is how it is being sold.
Stephen Lerner explains one plan to destroy Capitalism by SEIU and other communist-run organizations.
If it looks like a duck and walks/quacks/flies etc. like a duck, it is a duck. Mr. Obama and his administration are ducks. Don’t listen to their eloquent language, watch what they do and you will find the undeniable evidence.