More Gold Dealers Shut Down by Chokepoint
puffer
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https://www.youtube.com/watch?v=pwlQgNisgqA
Re: More Gold Dealers Shut Down by Chokepoint
Operation Choke Point is an initiative of the United States Department of Justice that was announced in 2013,[1] which is investigating banks in the United States and the business they do with payment processors, payday lenders, and other companies believed to be at higher risk for fraud and money laundering.
This operation, first disclosed in August 2013 Wall Street Journal story [2] has been criticized for bypassing due process; the government is pressuring the financial industry to cut off the companies' access to banking services, without first having shown that the targeted companies are violating the law.[3][4][5][6] As reported by the St. Louis Post-Dispatch, critics believe "it's a thinly veiled ideological attack on industries the Obama administration doesn't like, such as gun sellers and coal producers."[7]
The operation itself is now under investigation by two federal agencies.[7][8]
Results of the operation
In April 2014, Four Oaks Bank settled with the Department of Justice for engaging in the types of activities that Operation Choke Point is intended to stop. According to the complaint (dated Jan 8, 2014): "As of today, approximately 97 percent of TPPP-TX’s merchants for which Four Oaks Bank permits debits to consumers’ accounts are Internet payday lenders. A payday loan typically is a short-term, high interest loan that is not secured (made without collateral) and that has a repayment date coinciding with or close to the borrower’s next payday. Most payday loans are for $250 to $700. Annualized interest rates for Internet payday loans frequently range from 400 percent to 1,800 percent or more – far in excess of most states’ usury laws."[10]
On April 17, Kevin Wack of the American Banker reported that Fifth Third Bank and Capital One had terminated their accounts with payday lenders amid alleged increased scrutiny by federal regulators. Wack notes that "in a recent submission to a congressional committee, the Financial Service Centers of America, a trade group that represents check cashers and payday lenders, listed several banks that it says have terminated their relationships with at least one of its member companies in recent months. Besides Capital One and Fifth Third, banks on the list include Bank of America, PNC Financial Services Group, Wells Fargo and U.S. Bancorp."[11]
The Financial Service Centers of America (a trade group that represents payday lenders and other consumer businesses)recently commissioned a survey of its members about bank discontinuance. The survey, conducted by Deloitte Financial Advisory Services, found that "14 of the 61 banking relationships reported by survey participants have been terminated since November 2013."[12][13]
http://en.wikipedia.org/wiki/Operation_Choke_Point
https://www.youtube.com/watch?v=pwlQgNisgqARe: More Gold Dealers Shut Down by Chokepoint
Operation Choke Point is an initiative of the United States Department of Justice that was announced in 2013,[1] which is investigating banks in the United States and the business they do with payment processors, payday lenders, and other companies believed to be at higher risk for fraud and money laundering.
This operation, first disclosed in August 2013 Wall Street Journal story [2] has been criticized for bypassing due process; the government is pressuring the financial industry to cut off the companies' access to banking services, without first having shown that the targeted companies are violating the law.[3][4][5][6] As reported by the St. Louis Post-Dispatch, critics believe "it's a thinly veiled ideological attack on industries the Obama administration doesn't like, such as gun sellers and coal producers."[7]
The operation itself is now under investigation by two federal agencies.[7][8]
Results of the operation
In April 2014, Four Oaks Bank settled with the Department of Justice for engaging in the types of activities that Operation Choke Point is intended to stop. According to the complaint (dated Jan 8, 2014): "As of today, approximately 97 percent of TPPP-TX’s merchants for which Four Oaks Bank permits debits to consumers’ accounts are Internet payday lenders. A payday loan typically is a short-term, high interest loan that is not secured (made without collateral) and that has a repayment date coinciding with or close to the borrower’s next payday. Most payday loans are for $250 to $700. Annualized interest rates for Internet payday loans frequently range from 400 percent to 1,800 percent or more – far in excess of most states’ usury laws."[10]
On April 17, Kevin Wack of the American Banker reported that Fifth Third Bank and Capital One had terminated their accounts with payday lenders amid alleged increased scrutiny by federal regulators. Wack notes that "in a recent submission to a congressional committee, the Financial Service Centers of America, a trade group that represents check cashers and payday lenders, listed several banks that it says have terminated their relationships with at least one of its member companies in recent months. Besides Capital One and Fifth Third, banks on the list include Bank of America, PNC Financial Services Group, Wells Fargo and U.S. Bancorp."[11]
The Financial Service Centers of America (a trade group that represents payday lenders and other consumer businesses)recently commissioned a survey of its members about bank discontinuance. The survey, conducted by Deloitte Financial Advisory Services, found that "14 of the 61 banking relationships reported by survey participants have been terminated since November 2013."[12][13]
http://en.wikipedia.org/wiki/Operation_Choke_Point
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Comments
Wiki: On January 29, 2015, the FDIC issued a Financial Institution Letter that "effectively ends Operation Choke Point."[20] As reported by Forbes, "a change in the political landscape, many businesses threatening legal action and a congressman with a background in banking [forced] the bureaucracy to admit to misconduct and to stop financial attacks on legal businesses that the Obama administration deems to be politically incorrect."[21]
Of course none of this proves it isn't still going on.
<< <i>This is nonsense. The chokepoint program was targeted at SCAMS involving unauthorized credit card and bank draft schemes. Porn sites that want your credit card number "to make sure you are an adult...your card will not be charged...:" Websites selling grossly overpriced "survival" coins, fake diet pills, youth restorers (This 55 year old grandmother looks 27!! ) Free trials of various items or serviuces only to find you have been enrolled in automatic monthly billing for $75 to $200 and you can't stop it. "Canadian" pharmacies actually based in Russia or Romania selling fake drugs. The robocalls from "account services" offering to lower your interest rates on your credit cards. Once they get your credit card numbers they charge $200 or $300 for doing nothing, then sell your card number to orgtanized crime groups. But thanks to talk radio, teabaggers and Darrell Issa, any type of government regulation gets framed as an attack on God, guns and gold... >>
Frank, the chokepoint "program" was a strong arm scam. It was not a legitimate form of regulation. It was an abuse of power to work around required methods of bringing your great change to America. You progressives have got to learn that there is a constitutional way of doing things - if they can't be done per the existing rules that require a majority, then they are not the will of the people, even if your select group thinks it knows what is best for the majority. "Due process" is a founding father right that no self appointed group should have the power to alter.
There are existing laws to target the illegal activities you mentioned. Let's change America and start enforcing the rules (established by a majority) we already have. In doing it the right way we can ensure that legitimate businesses, such as coin and bullion dealers, are not bullied and abused. As a coin dealer you should welcome an end to such tyranny. Do you also support law enforcement's ability to take your cash while on your way to the bank to make a deposit? According to them, it could be laundered money - you have to prove it isn't.
"Interest rates, the price of money, are the most important market. And, perversely, they’re the market that’s most manipulated by the Fed." - Doug Casey
It'll be alright Frank. 3:30am in Texas? Better get your rest.
<< <i>Getting back to the OP, other than in the headline, where does it say anything about gold dealers getting shut down? WHat dealers? Where? >>
I was thinking on the same wave length. Are they referring to the "cash for gold" fly by night outfits? I have not heard of any legit gold dealer being affected.
<< <i>
<< <i>Getting back to the OP, other than in the headline, where does it say anything about gold dealers getting shut down? WHat dealers? Where? >>
I was thinking on the same wave length. Are they referring to the "cash for gold" fly by night outfits? I have not heard of any legit gold dealer being affected. >>
Know of none reported. The issue is shouldn't "legit" be determined via due process in a court of law and not by an FDIC examination threat to the banks handling business accounts?
The FDIC list of "high risk" merchants:
Ammunition Sales
Coin Dealers
Credit Card Marketing
Firearms Sales
Fireworks Sales
Gambling
Home Based Charities
Multi-Level Marketing
Pharmaceutical Sales
Short-term Loans
Telemarketing
Tobacco Sales
Travel Clubs
There are ample laws and enforcement personnel to tackle any predatory or illegal activities conducted by any "non-legit" business practice, including dishonest coin or bullion dealers. Scaring banks into closing business accounts, using the threat of examination scrutiny, is not the way a democracy works. There has been a strong trend in recent years for the federal government to have others do what we pay the feds to do. This dangerous trend may not affect one at the moment, but it certainly eventually will.
"Interest rates, the price of money, are the most important market. And, perversely, they’re the market that’s most manipulated by the Fed." - Doug Casey
<< <i>Know of none reported. The issue is shouldn't "legit" be determined via due process in a court of law and not by an FDIC examination threat to the banks handling business accounts? >>
If that is the case, the OP should change the title of his thread.
"Interest rates, the price of money, are the most important market. And, perversely, they’re the market that’s most manipulated by the Fed." - Doug Casey
He notes that the FDIC has not shutdown operation choke point (ie Wiki is wrong). Its update basically says that banks should perform due diligence with these businesses.
Rep. Blaine Luetkemeyer, R-Mo., today reintroduced legislation to end the Justice Department initiative known as Operation Choke Point.
“While steps have been made in the case against Operation Choke Point, there is still a need for my legislation to be reintroduced this Congress,” he said in a press release.
Source
Let me explain the facts of life to people who sign the back of the paycheck.
Govt intimidation can be accomplished on soooo many different levels. Those cats play the
psych game as well as anyone. One could even quip "they're good, very good"
It's for the children.
If you have nothing to hide, there is no need to be concerned.
We'll be adding 50cents to the cost of a gal of gas to cover road repairs. Just for this year only.
You'll have to water your grass or city property values will decline. But but there's a drought. OK, come in with a landscape architect plan to relandscape to go to drought resistant plantings. By the way, staff review $1000 + architect fee.
Freedom costs baby. A lot.
I understand that we need a due process in place for the good of everyone in the long wrong, but there are not ample enforcement personnel to tackle any predatory or illegal activities conducted by any "non-legit" business practice. I have the impression they are too thin. They take on cases based on some kind of priority.
I do agree we already have ample laws in place, its just the enforcement part that is sluggish.
What we can do as citizens is simply get the word out on yelp, message boards, and social media whenever we find a scam organization. I am not advocating smear campaigns or things that border libel. Just matter of fact reporting like so and so company advertises that their natural products for so and so ailments are FDA approved, but in reality, natural remedies are never approved by the FDA for efficacy (refer them to the website). Have information out there for people to make their own choices and always reference fact checked websites so others can verify this. We also need to look out for each other. I cannot stress this enough. Scam companies depend on new recruits to trick that have contact with none of the previous individuals that got scammed.
Just my 2 cents!
BST: Tennessebanker, Downtown1974, LarkinCollector, nendee
<< <i> there are not ample enforcement personnel to tackle any predatory or illegal activities conducted by any "non-legit" business practice. I have the impression they are too thin. They take on cases based on some kind of priority. >>
Re-assign the many SEC and banking regulators who seem to have a lot of free time.
"Interest rates, the price of money, are the most important market. And, perversely, they’re the market that’s most manipulated by the Fed." - Doug Casey