“The biggest problem that we’re facing right now,” Illinois state senator Barack Obama said in 2008, “has to do with George Bush trying to bring more and more power into the executive branch and not go through Congress at all, and that’s what I intend to reverse when I’m president of the United States of America.”
But now that he’s the one in the White House, he’s plans to use his executive privilege to deny the gun industry of working capital and credit. It’s dressed up as fraud prevention, but many of the companies targeted have good credit histories and operate good and well-managed companies.
The Obama Administration is using the Federal Deposit Insurance Corporation to impose a “high risk” label on any business making firearms. Add to this the Justice Department’s ‘Operation Chokepoint,’ and the gun industry, which generates about $37 billion in business each year and is responsible for 250,000 full-time jobs, will fail.
Since 2011, regulators have increased scrutiny on banks’ customers. The FDIC in 2011 urged banks to better manage the risks of their merchant customers who employ payment processors, such as PayPal, for credit card transactions.
“We’re committed to ensuring that our efforts to combat fraud do not discourage or inhibit the lawful conduct of these honest merchants,” the Justice Department said in a May 7th blog post.
Banks are being forced to comply with Washington’s demands out of fear, because conducting business with clients deemed “risky” puts them in jeopardy of audits. This overreach also side-steps the 2nd Amendment.
“It’s pretty clear,” says Texas Congressman Steve Stockman, “that unless Congress uses the power of the purse to stop him, Barack Obama will use his ‘phone and his pen’ to ban guns by cutting off money for gun manufacturers and dealers.”
In 2012, Bank of America dropped the 12-year account of McMillan Group International, a gun manufacturer in Phoenix. Gun parts maker American Spirit Arms in Scottsdale, Arizona, received similar treatment by B of A.
The banking giant blamed a misunderstanding with the Arizona gun manufacturers McMillan Group International and American Spirit Arms.
“We would not deny banking services to an organization solely on the basis of its industry,” the banking giant later claimed.
However, the American Banking Association (ABA,) the industry’s advocacy group in Washington D.C. says there is an ongoing push to shutdown gun manufacturers through banking regulations.
“We’re being threatened with a regulatory regime that attempts to foist on us the obligation to monitor all types of transactions,” senior ABA vice president Richard Riese, said in the April 28 issue of American Banker. “All of this is predicated on a notion that the banks are a choke point for all businesses.”
Just last month, Black Rifle Armory in Henderson, Nevada, had its bank accounts frozen as the bank tried to determine whether any of Black Rifle’s online transactions were suspicious.
Congressmen Darrell Issa, chairman of the House Oversight and Government Reform Committee, and Jim Jordan, chairman of the House’s Economic Growth Subcommittee, sent a letter to U.S. Attorney General Eric Holder accusing the administration of abusing it’s authority.
“The (committee) is concerned that both the goal and mechanisms of Operation Choke Point may constitute serious mismanagement and abuse of (your) department’s … authority…” reads the letter in part.
“There is evidence that the true goal of Operation Choke Point is to target online lenders and the payment processors who serve them,” the letter continues. “The extraordinary breadth of the Department’s dragnet prompts concern that the true goal of Operation Choke Point is not to cut off actual fraudsters’ access to the financial system, but rather to eliminate legal financial services to (businesses to) which (your) Department objects…”
“(Your Department) is needlessly punishing good actors with the bad, and threatening legitimate merchants,” it concludes.
Holder has so far refused to release any of the documentation demanded by Issa and Jordan.