This is a big deal if the FDIC actually has the authority to enforce it. The letter to banks will counteract the pressure to close accounts of politically-disfavored businesses, and more importantly the requirement to make recommendations in writing will provide for an evidence trail in cases where accounts are actually closed due to government regulatory pressure.
I do find myself with some uncomfortable questions, though.
First, obviously this doesn't address past issues. Second, it won't stop people from giving "advice" and not putting it in writing. It may discourage it, but it can't stop it. Third, Operation Chokepoint has generally been described as a joint operation with the Department of Justice. The details aren't known, but FDIC doesn't necessarily have authority over everyone involved.
Admission of wrongdoing sounds like lawsuits can and should be filed pronto.
This is big news, and I wonder if -- like with the IRS case -- an internal investigation is driving the desire to get out in front of the news cycle with this.
This entry was published Thu Jan 29 00:25:37 CST 2015 by TriggerFinger
and last updated 2015-01-29 00:25:28.0.