Financial Institution Customer Protection Act of 2015
Floor Speech
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Mr. HILL. Mr. Chairman, I am pleased to address H.R. 766.
Before I talk about what my constituents have asked me to talk about, Mr. Chairman, which is the problems with Operation Choke Point, for I do take my instruction from my constituents at home, I do want to call my distinguished ranking member's concern to this report about this bill, which says, ``or a Federally insured financial institution against an unaffiliated third person.''
So I have to say, Mr. Chairman, I don't understand where the gentlewoman from California is coming from in terms of gutting FIRREA. It was certainly my privilege to serve at Treasury when FIRREA was negotiated with the Congress and enacted into law.
I rise today, though, to support H.R. 766, the Financial Institution Customer Protection Act, which helps to target and stop the egregious abuse of executive power in what has been known as Operation Choke Point.
Bank examiners want our commercial banks across the country to be conscious of reputation risk, something every institution, large and small, takes very, very seriously.
Our boards of directors of our banks understand that, just like credit risk, reputation risk is important. We don't need to be lectured on the dangers of doing business with some high- risk customers.
But, in Operation Choke Point, we find subtle and not-so-subtle pressure from regulators to terminate business relationships rather than to expose that reputation risk.
I have heard from pawnbrokers in Arkansas, legally licensed State and Federally regulated businesses, that they are victims of Operation Choke Point by having their bank servicing limited or cut off.
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Mr. HILL. Just last week, Mr. Chairman, not 2 years ago, a firearms dealer in my hometown of Little Rock was dumped by his payment processor and is now having to pay more in interest, having less control of his cash.
These are small, legitimate businesses that do business with our banks, and they are being penalized by the prejudiced, politicized agenda of this administration.
This is not the only example. It is reminiscent of the IRS targeting of conservative groups.
So, with great pleasure, I support my friend from Missouri's bill. It is a reasonable, targeted approach. I urge all my colleagues to support it.
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