Operation Choke Point is back

Financial Regulation RagLast week, New York Governor Andrew Cuomo and the New York Department of Financial Services (NYDFS) instructed New York based financial institutions (NY FIs) to reconsider their relationships with the National Rifle Association (NRA) and “similar organizations” in light of the NRA being an “extremist organization.” NYDFS wants NY FIs to evaluate whether relationships with the NRA pose reputational risk to the institutions and “jeopardize public safety.”

This request could easily be construed is a thinly veiled threat. While the NYDFS statement does not explicitly say that NY FIs that may face regulatory sanction for failing to cut ties with the NRA, it doesn’t rule out the possibility either. If the NYDFS had no intention of threatening regulatory sanctions, they could clearly have added language taking the threat of enforcement off of the table. They didn’t, which indicates they want NY FIs to think there is a potential the government will come after them if they don’t end their relationships with groups like the NRA.

This is one state, where much of the financial industry is based, that is trying to dictate rules for the rest of the country. This is exactly why our Constitution has an interstate commerce clause: so Congress can put a stop to this BS.

But that sort of law takes time and effort to put together.

Which we won't have if we lose the House in 2018.

This entry was published Wed Apr 25 09:44:37 CDT 2018 by TriggerFinger and last updated 2018-04-25 09:44:37.0. [Tweet]

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