FDIC Can’t Ease ‘Choke Point’ on Its Own, Industry Says
Richmond partner David Anthony was quoted in a January 28 Law360 article about the Federal Deposit Insurance Corp. taking steps to encourage banks to keep doing business with online lenders to help ease industry concerns over the Justice Department’s “Operation Choke Point.”
Operation Choke Point has sought to categorically shut down online lenders’ access to the banking system; Republicans in Congress, however, say the operation is simply a ploy to shut down businesses that the Obama administration dislikes. While the FDIC, Fed and OCC have on repeated occasions said that banks should continue monitoring their business relationships on a case-by-case basis, David said, a push from Republicans in Congress may have provided a tipping point for this policy change.