In contemporary lexicon, few terms have been reduced to shopworn tatters more than “fascist,” typically through mindless overuse against the current democratically elected occupant of the White House.
To the degree that fascism references an economy corrupted by government collusion with private industry to enforce ideological conformity, however, efforts like “Operation Choke Point” targeting politically disfavored businesses actually merit that descriptor.
In welcome news, however, Citigroup announced this month that it would no longer deny financial services to firearms retailers, moving the nation one step closer to an end of that execrable campaign.
Americans expect government officials to protect our constitutional liberties, not to undercut them by weaponizing financial institutions against lawful but politically disfavored businesses. That’s precisely what happened, however, under Operation Choke Point.
Launched during the Obama administration under the guise of combating alleged financial fraud, Operation Choke Point saw federal bureaucrats pressure banks and payment processors to sever ties with entire categories of perfectly legal businesses. It originated at the U.S. Department of Justice (DOJ) in 2013, in conjunction with banking regulators like the Federal Deposit Insurance Corporation (FDIC) and the Office of the Comptroller of the Currency (OCC). Working together, those agencies warned banks that conducting business with certain industries could expose them to legal or reputational risk.
That ultimately resulted in a blacklisting of businesses like firearms manufacturers and retailers, payday lenders and other disfavored enterprises. Not due to wrongdoing or criminal conviction, but simply due to Obama administration animus.
Banks quickly got the message that if they wanted to escape the wrath of their federal overlords, they’d better get in line. Targeted businesses subsequently found their accounts terminated, their access to credit frozen, and their merchant services canceled.
Firearms dealers and manufacturers found themselves among the hardest-hit, their businesses crippled despite full compliance with federal and state laws.
Accordingly, among the most offensive and dangerous aspects of Operation Choke Point was its impact on the Second Amendment. The right to keep and bear arms is a natural right protected by the Constitution, not a privilege subject to summary revocation by the Obama-Biden administration. Yet through intimidation tactics, lawful gun sellers were starved of the financial service oxygen that any typical business needs to survive.
The implications of Operation Choke Point, however, extended well beyond the Second Amendment. By pressuring banks to discriminate against legal businesses it threatened a cornerstone of our market economy: the right to engage in lawful commerce.
By wielding financial regulators as cudgels to punish demonized industries, Operation Choke Point didn’t just harm the targeted business owners. It also deprived consumers of choice and injected political bias into sectors that should operate based on merit, not ideology.
Imagine if the tables were turned, and an administration used the same tactics against green energy companies, socially liberal businesses, or environmental organizations. The left-wing outcry from the likes of Bernie Sanders would be immediate — and justified.
In any event, if a business engages in fraud or illegality, the proper course is prosecution in a court of law before an impartial judge and jury. In Operation Choke Point, no charges were filed, no laws were broken, and no trials occurred.
That also violates the principle of due process under our Constitution and subverts the separation of powers, because regulators pursued policy goals and imposed penalties that Congress had not authorized and courts had not sanctioned.
After Operation Choke Point received public exposure, a 2014 report by the House Committee on Oversight and Government Reform revealed the disturbing breadth of the program and the heavy-handed tactics it employed. Then, in 2017, the Trump administration formally ended Operation Choke Point at the federal level.
Although that offered a welcome correction, significant damage had already occurred. Businesses had closed, jobs had been lost, and the ominous tone across industry lingered. Additionally, as the Citigroup example attests, Operation Choke Point continued despite its governmental demise.
Today, some in Congress advocate legislation to ensure that such abuses never happen again. The Fair Access to Banking Act would prohibit banks with over $100 billion in assets from refusing service to lawful businesses based on political or ideological considerations. Some states are also considering banning state agencies from doing business with companies that discriminate against firearms, energy or other industries.
Whatever the potential merits of federal or state legislative action, however, private citizens can demand greater transparency, due process, and insist that government stay in its constitutional and limited-government lane.
Operation Choke Point offers a cautionary tale. It shows how government and industry can collude to exact partisan punishment and erode rights not through legitimate prohibitions, but through bureaucratic manipulation. For that, “fascist” is not an excessively inflammatory term.
Timothy H. Lee is Senior Vice President of legal and public affairs at the center for Individual Freedom.
Reprinted with permission from cfif.org by Timothy H. Lee.
The opinions expressed by columnists are their own and do not necessarily represent the views of AMAC or AMAC Action.
Typical of ideologues, once these zealots zero in on an infringement they’ll not stop until every possible outcome has been tried. In California, methods to destroy the second amendment haven’t been totally exhausted yet and since they haven’t figured a way to completely ban guns generically, they’ve targeted their aspects ie: size, shape, barrel length, grip, capacity, concealment, drop tests all in the name of firearm safety. Then, there’s that paid safety test one must submit to before anyone can actually purchase that shiny new weapon, but it better be on the state’s allowed roster. There’s more, a manditory 10 day waiting period, because the government is hoping you’ll come to your senses and have a change of heart. Nevermind you submitted to fingerprints, background checks and pre-payment of all regulatory fees. Still more, if you want to actually use that weapon, you’ll need to submit to another background check and pay another fee for ammunition. Now, If this fails to deter lawful transactions then target the manufacturers and drive them out of business because it takes money to design, manufacture and market. Ideology of gun control ultimately has many facets. That’s a lot of infringements for a right that will not be infringed upon. I don’t think they’re done yet.
BOA debanked us. The accounts were used by my wife, yet both of our names were on the accounts. Nearly 25 years at this location (BOA bought our ‘bank’ 10 year ago). My bank was separate and the one used for 2nd amendment activities. Then one day BOA froze the accounts and we bounced many checks, including one to the IRS and our healthcare premium.
Excuse is they sent a letter needing income information for me. Said they also called. ALL lies. When our federal senators office got involved, all the run arounds and excuses ended. They refunded all the late fees and interest charges.
BOA must have been ‘searching’ all of our activities and noticed my hobby.
Advice: “Bring the heat Ricky” call, write, email everyone you can, hit all the review sites to make your case.
Just now Citi Corp will not punish Americans , aint that wonderful . To hell with them and any other not job banks that broke the laws . Dont do any business with these groups . Name them so AMAC members can stop using them !
Democrats are so obvious. Only reason they want to confiscate guns is to establish the dictatorship. They’re not against violence, they’re against gun violence. Regular violence is okay, just ask them or attend one of their many peaceful protests. I finally discovered why they call them all peaceful protests. Supreme Court has determined that if you intended your protest to be peaceful you were not legally responsible for any violence or damage that occurs. Explains a lot doesn’t it? Democrats always play the long game
C’mon! The Democrat Party has not been pro-liberty in my 55 years as an adult. They’re the party of tyranny, despotism, dictatorship, death, subjugation, oppression, slavery, the end of a free U. S., and who knows what all else. I no longer expect anything else from any of them.
I’m glad to be on the side that has the most guns, and knows which bathroom to use.
This is just one small splinter in the anti-2A two-by-four. The idiots in Denver are constantly introducing bills to take away our right to protect ourselves and our families.
Democrats and rino’s no doubt are doing what they can to undermine our Constitution, Bill of Rights, our freedoms, for one common goal and sadly George Bush Sr. a rino, put it succinctly: “We must usher in the New World Order”. I watched that speech. Think about it Americans. This nation has been unlike any other literally, in history. Our Founding Documents, our laws, our freedoms, our once unique and solid justice system. But sadly we’ve taken it for granted that it would remain forever. We’re losing our nation. The first major attack is and has been on our 2nd. Amendment. As one so long ago stated: “Kings, absolute tyrants since the dawn of time, cannot tolerate arms in the hands of the people.” Think about it especially if you live in a democrat state. Our once solid red state of Colorado was literally stolen under cover of darkness by roaches masquerading as moderates. We’ve had more draconian “laws” dumped on us than literally any other state. And the dumping goes on. It’s been incremental for awhile, but it’s not anymore. If you live in a democrat state expect the attacks on your right to self defense to speed up. I would hope for a massive crowd of angry Americans to start the fight…but will they? Will you? We did after the Waco slaughter in ’94…stopped the democrats cold.
I’ve been on the Colorado’s FBI list for years…as an enemy of the state because I’ve gone after anti-Second Amendment politicians. If you’re not on some democrats list already…will you be?
Anyone ever seen the photos General Dwight D. Eisenhower had his army photographers take? He told them to take “thousands of pictures in the camps where over 6 million Jewish people died horrific deaths, as no one would believe him.” Just an aside: Hitler made the Jews “register” their guns. Think about that one. If I’ve repeated myself, there’s a reason. This will not go away.
2nd Amendment: “A well regulated Militia, being necessary to the security of a free State, the right of the people to keep and bear Arms, shall not be infringed.”
What part of “The People” and “shall not be infringed” don’t the politicians understand?
Points:
1. If you have to ask permission to buy any kind of arm (weapon), your right to keep and bear arms has been infringed.
2. If they can tell you what type of weapon you can buy, your right to keep and bear arms has been infringed.
3. If they can tell you where or how you can carry your weapon, your right to keep and bear arms has been infringed.
4. If they can tell you what kind of ammunition you can buy for your weapon, your right to keep and bear arms has been infringed.
5. If they can tell you how many weapons you can have or purchase, your right to keep and bear arms has been infringed.
6. “Arms” does not just mean “firearms”! All weapons that are light enough for a normal person to carry (bear) no matter what kind, are covered under the banner of “arms” and prohibiting or making conditional on government approval of any of them is an infringement on your right to keep and bear arms.
It’s about time. Now lets abolish the CDC that stops doctors from providing better care and sometimes forces harmful measures like the Covid shots that killed so many.
What difference does the death of Operation Choke Point make when soon the bankruptcy of this nation, and make no doubt about it, having a debt to GDP of about 130-1 is bankrupt, when the national insolvency bleeds into the finances of the citizens.
Does anyone truly believe that should the government need a cash infusion and like NOW, foreign nations are refusing to buy our debt instruments that our government wont confiscate OUR savings or holdings of any kind, well, they are laughably ignorant.