Apparently they had no idea that labeling gun shops “high risk” might hurt them. It was a just a big misunderstanding… sure.
Via The Daily Signal:
Federal regulators have backed away from pressuring banks to stop doing business with legal enterprises that the Obama administration labeled “high risk” — including selling guns, making payday loans, and trading in rare coins.
Late last month, the Federal Depositors Insurance Corporation told banks that it had removed a list of 30 examples of “high risk” activities from the agency’s website, stating its list had “led to misunderstandings.”
By “misunderstandings,” FDIC apparently meant that its guidance led to sudden decisions by banks across America to close accounts with customers that fell under any of the listed categories.
If they didn’t close the accounts, bank officers thought, they could be subject to federal audits or other investigations.
FDIC spokesman Andrew Gray, in an interview this week with The Daily Signal, said:
The FDIC recognizes the confusion about the meaning and significance of these lists of examples of merchant categories, including the potential for the misperception that the merchant categories were specifically prohibited or discouraged.
Despite FDIC moves to “clarify” its intent, federal financial regulatory agencies have not pulled out of a secretive Obama administration program dubbed Operation Choke Point. Those squeezed by the Justice Department-coordinated operation include business owners such as Brian Brookman, an Army veteran and former police officer.
Brookman, 43, owns a pawn shop in Grand Haven, Mich., where he also used to sell firearms. In June, after growing tired of more and more regulation, he decided to let his firearms license expire and focus on his pawn shop.
Brookman opened a business account for the shop last month at a local Chase Bank. Two weeks later, without explanation, he received a letter from Chase stating it was closing the account, he told The Daily Signal.