Operation Choke Point was undertaken to investigate the business transactions between banks and businesses that were considered to pose a higher risk for fraud and money laundering. The FDIC and DOJ would target types of companies participating in industries that they deemed risky, reducing their access to financial institutions. However, the agencies were forced to admit that they were discriminating against legal businesses on the basis of “reputational risk” — including those manufacturing and selling guns and ammunition.
- Not enactedThe President has not signed this bill
- The house has not voted
- The senate has not voted
Committee on Banking, Housing, and Urban AffairsIntroducedFebruary 12th, 2015
- senate Committees
What is Senate Bill S. 477?
Cost of Senate Bill S. 477
In-Depth: In a statement introducing his bill, Sen. Marco Rubio (R-FL) said
“Operation Choke Point is an attempt by the Obama Administration to weaken 2nd Amendment rights in America, which enable people to protect themselves and their families. We must stop this administration’s effort to target private industries and the 2nd Amendment rights of law-abiding citizens.”
The industries originally considered to be participating in “high-risk activity” by the FDIC included coin dealers, lottery sales, pay-day loans, telemarketing, and tobacco sales — among others.
After Operation Choke Point began to draw scrutiny, the FDIC began retracting specific provisions of the program that became public. The agency later released
a new regulation in January 2015 explaining that banks should be:
“neither prohibited nor discouraged from providing services to any category of customer accounts or individual customers operating in compliance with applicable laws.”
- Sponsoring Sen. Marco Rubio (R-FL) Press Release
- The Hill
- The Federalist
- The Daily Signal
- Gun Owners of America (In Favor)
- NRA (In Favor)
- U.S. Consumer Coalition (Context - In Favor)