More harrassment of opponents by the Obama administration


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How the Obama Justice Department strong-arms banks to harass legal businesses it doesn’t like.

A Justice Department fraud prevention program came under fire Thursday for allegedly morphing into actively pressuring banks to deny financial services to businesses for political reasons.

Operation Choke Point functions as a partnership between the Department of Justice (DOJ) and various other federal agencies which deal with bank regulations, specifically the Treasury and the SEC. The objective of the project is to choke-off fraudulent businesses from accessing financial services, in an effort to protect consumers.

The controversy, however, is over allegations that the DOJ is pressuring financial institutions to decline doing business with so-called “high risk” industries which line up squarely against the political leanings of the current administration. These businesses include ammunition sales, payday loans, pornography, fireworks companies, and others—24 industries in total, as listed by the Federal Deposit Insurance Corporation (FDIC).

Much of the news today and yesterday has been about the Malaysian plane shot down over the Ukraine. Though Obama’s response was pitiful, I find this story above much more significant as it illustrates bluntly this administration’s strong misuse of power for political ends.

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