Operation ‘Choke Point’ Cancelled

The DOJ has closed down all initiatives associated with the operation that reportedly “choked off the financial oxygen” to businesses.

August 23, 2017

WASHINGTON – The Department of Justice (DOJ) has officially closed down Operation Choke Point, which seemingly used legal pressure to “choke off the financial oxygen for businesses that were exploiting consumers,” reports the National Review.

In a letter to House Judiciary Committee Chairman Bob Goodlatte (R-VA), Assistant Attorney General Stephen Boyd confirmed that the DOJ has closed down all initiatives associated with the operation. The letter said that Operation Choke Point represented a “misguided initiative conducted during the previous administration” and that “we share your view that law-abiding businesses should not be targeted simply for operating in an industry that a particular administration might disfavor.”

Early subpoenas issued to banks had attached a guidance document from the FDIC that warned banks to consider “reputational risk” in their banking relations. The list of industries that could engender such risk included firearms and ammunition sales, pornography and short-term lending. Banks responded by cutting off relationships with all these businesses, reports the news source.

Boyd said: “We reiterate that the Department will not discourage the provision of financial services to lawful industries, including businesses engaged in short-term lending and firearms-related activities.”

Advertisement
Advertisement
Advertisement