LaMalfa Votes to Block “Operation Choke Point”

Washington, DC – Rep. Doug LaMalfa (CA-R) today voted in favor of a measure that would block the Obama administration from preventing law-abiding businesses from operating without due process. HR 766 prohibits federal banking regulators from formally or informally suggesting, requesting, or ordering a financial institution to terminate a specific customer account, or group of customer accounts, except in specific circumstances affecting national security. The measure passed on a 250-169 vote and will now be sent to the Senate.

“We acted today to block “Operation Choke Point”, under which the Obama administration has attacked law-abiding businesses like firearm and ammunition dealers by coercing banks to cut off their financing. The government should never act outside of the law to achieve a president’s political goals, but that’s exactly what Operation Choke Point was designed to do: shut down law-abiding businesses not through legal action, but with an implied threat to their banks.”

Beginning in 2012, federal agencies including the Federal Deposit Insurance Corporation and the Department of Justice sent letters to financial institutions identifying firearm dealers as “high risk”, and implying that institutions which did business with them would face additional scrutiny. Over the course of the following years, a number of firearm dealers saw their accounts closed and financing cut off, despite never having been charged with a crime or accused of violating financial regulations.

Congressman Doug LaMalfa is a lifelong farmer representing California’s First Congressional District, including Butte, Glenn, Lassen, Modoc, Nevada, Placer, Plumas, Shasta, Sierra, Siskiyou and Tehama Counties.

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