Community Bankers of Iowa Monthly Banker Update June 2014 | Page 5

Fine Points
Written By: Camden Fine, President and CEO of ICBA

Big Brother: Picking Winners and Losers
Heaven protect us from the government’s
agents of do-goodism.
Unfortunately, the U.S. Justice Department
has a Lone Ranger vigilante squad riding
roughshod within its bureaucratic ranks.
That self-deputized morality posse has
been exposed through Operation Choke
Point, a law enforcement initiative targeting
third-party payment processors and their
financial institutions that process payments for
businesses engaged in higher-risk, but legal,
activities.
Not content with pursuing true law breakers,
however, at least some officials involved with
Operation Choke Point have instead strayed
off the legitimate law enforcement path
into meddlesome political pastures. These
badge-toting, unaccountable bureaucrats at
the Justice Department, most likely working
with a nudge and a wink from other federal
agencies, have started chasing a few personal
hobbyhorses—the costly but legally operating
check-cashing shops and payday lenders
that some government officials view as
disreputable or unsavory.

indirectly, not to do business with—or to do
business with—any other lawfully operating
company. Similarly, no government official
should decide which financial services a lawful
business may or may not access. Advancing
any government agenda threatens every
American’s economic freedom. Allowing
check-cashers and payday lenders to be
targeted today leaves almost any other set of
lawfully operating businesses vulnerable to
similar treatment tomorrow.
Of course, every community bank supports
the prosecution of criminals operating in the
financial system. Community banks and other
financial institutions dedicate considerable
time and resources to monitoring and
reporting for possible financial crimes under
the Bank Secrecy Act. But Operation Choke
Point reveals the unwelcome trend of requiring
banks to serve more as snooping agents for
the government rather than as trusted financial
service providers. Needless to say, ICBA is
extremely concerned that Operation Choke
Point is forcing community banks to make
untenable choices of either severing valuable
and legal customer relationships or risking
Justice Department enforcement actions.

I am not here to defend the business models
of check cashers or payday lenders; that’s for
Working with other payments industry groups,
those industries to do. I’m writing about this
ICBA has asked the Justice Department to
topic because some officials involved with
suspend Operation Choke Point and redirect
Operation Choke Point have been quietly
the program’s resources to other programs
pressuring financial institutions, including
legitimately investigating businesses that
community banks, to
may be violating the law.
deny these lawful
Now both Democrats and
businesses access to
Republicans in Congress
mainstream payment
are concerned about
“Programs like Operation
services and
this program. Several
essential banking
lawmakers are attempting
Check Point can all too easily
accounts. This is an
to learn more about
abuse of government
Operation Choke Point, so
cross the line separating
and policing power
this story is still unfolding.
that is alarming and
freedom from tyranny.”
dangerous.
When cape-crusading
government officials
Whatever anyone
begin to pick winners
feels about the
and losers among legally
high costs of using check cashers and
operating businesses, everyone should be
payday lenders, Congress has decided these
very concerned. Programs like Operation
industries are legitimate. In fact, during their
Choke Point can all too easily cross the line
deliberations over the Dodd-Frank Wall Street
separating freedom from tyranny.
reform legislation, federal lawmakers reviewed
the payday business model and decided
not to interfere with these state-regulated
Following Mr. Fine
companies, which millions of Americans rely
More than 1,000 people are following
on.
Camden Fine’s tweets @Cam_Fine—are
No government official should coerce any
you? Visit www.twitter.com/cam_fine.
lawfully operating company, either directly or
CBI BANKER UPDATE | JUNE 2014

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