You Need to Know About “Operation Choke Point”…

The FDIC made a weak admission to Operation Choke Point and its targeted “risk management” in shutting down certain accounts without explanation.

June 27, 2019

FDIC bank accounts

Imagine this…

You walk into your bank to do some business. You pull out your ID, hand it to the teller, and wait for your money or deposit receipt. But then something creepy happens…

The teller says, “I’m sorry, we’ve received notice that your activities are ‘high risk,’ so I’m afraid we’ve shut your account down.”

You talk to the manager, and get the same story. You work your way up the chain, and no one is willing to give you much more information than “I’m sorry.”

So you take your money, and go to a different bank, but you can’t open an account because they also think you’re “high risk.” You feel like you’ve been “black balled.”

Now stop imagining, this nightmare of Government overreach is real.

Introducing the over-reaching U.S. operation enacted in 2012 called “Operation Choke Point.” An article on Forbes explains:

Last week brought new revelations regarding Operation Choke Point, the Obama administration’s effort to freeze politically disfavored businesses out of the financial system. Rep. Blaine Luetkemeyer (R-Mo.), who helped lead a multi-year effort to shut the program down, highlighted some of the newest findings and pointed out that stopping Operation Choke Point is not a partisan issue.

In fairness, some of the types of businesses the Operation was created to address were high-risk lenders like payday loan companies. But they are legal in the U.S., so you would also have to ask if you want any Government agency interfering with legal business operations by cutting off their bank.

And before you think there is some long, complicated, and well-thought-out process to go through before the FDIC could have your account closed … there isn’t.

From the same article:

Officials at the Federal Deposit Insurance Corporation (FDIC), for instance, simply had to inform the banks they were overseeing that the government considered certain types of their customers “high risk.”

So, if you liked to move your money around, say to investments or offshore accounts that the U.S. Government didn’t approve of, two words and your main account is closed. Even if what you were doing is completely legal.

Then, you’re black balled, because the actual “reason why” is locked away in a database. So you can’t open an account (or get a loan) in your area at any other bank.

Over at American Banker, they give an example of how a “low risk” and 100% legal business gets their account shut down by the “Banking Mafia” (emphasis mine):

In one example of blatant intimidation, a bank terminated its relationship with a legal business after threats from the FDIC. The bank eventually surrendered to the pressure, and when the bank notified the FDIC of the decision, they admitted that a risk assessment showed the business “pose[d] no significant risk to the financial institution, including financial, reputation, and legal risk,” yet they still terminated the banking relationship.

So the bank found the business was “low-risk,” but the FDIC intimidation was enough to get their account closed.

Ultimately, two businesses ended up suing the FDIC in DC District Courts.

The FDIC “Settled” the Lawsuit, But is The Issue Settled?

The FDIC was sued, tried to get the lawsuit dismissed, but failed. So they settled. You might think that this was a big win for the plaintiffs, but it wasn’t.

The “settlement” got the Plaintiffs to dismiss the charges against the FDIC in exchange for some concessions. I won’t list all of them here, but two are suspicious:

First: The FDIC was required to issue a statement, and it appears they tried to downplay what actually happened, saying:

… “that certain employees acted in a manner inconsistent with FDIC policies with respect to payday lenders in what has generically been described as ‘Operation Choke Point’ and that this conduct created misperceptions about the FDIC’s policies.”

Second: If an institution is not properly managing risks associated with deposit accounts, the FDIC may take supervisory action, including recommending or requiring termination of a deposit account.

So this allows “Operation Choke Point” to continue in full force, and not much appears to have changed. Granted, the FDIC statement said that recommendations to terminate an account “are not made through informal suggestions.”

But do you want to take what any U.S. Government Agency says at face value, especially when it concerns your money?

Ironically, Congressman Blaine Luetkemeyer left a closing thought, expressing his outrage on American Banker:

I am deeply concerned by the blatant intimidation, coercion and bias employed by unelected government officials to play politics with the livelihood of Americans. No matter your ideological leanings, the government should not be able to destroy all that you have worked for in pursuit of the American dream.

Even though that thought comes from a politician, I think we should all take notice and keep our options open.

Now take a moment and consider how safe your money is, and the integrity of the financial institution where that money is kept.

How to Keep Your Options (and Exits) Open

Today, it’s more important than ever to have an offshore bank account and be able to leave the U.S. and set up shop in a foreign country. It’s alsocritical that you protect and grow your wealth.

So I’d like to show you how to do both.

As you probably know, I’ve been living the life of a “digital nomad” since 2001. And during that time, I’ve learned dozens of extremely valuable lessons about how to keep your options open and maximize your freedom.

I created GWP Insiders to share those lessons.

In fact, I recently updated the entire membership area and I’m relaunching it as GWP Insiders 3.0. And, for a limited time, you can save 70% on membership.

Why should you seriously consider this?

GWP Insiders is a complete roadmap of internationalization strategies for location independent entrepreneurs and investors looking for answers to tax, residency, wealth, and lifestyle questions.

Bottom line, we believe in REAL freedom. Freedom to keep the money you earned.  Freedom to travel where you want, when you want…

Freedom to be private and secure in your business affairs and day to day life.

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  • The biggest tax haven in the world (most NEVER get this right).
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To living privately,

Bobby Casey

Location Independent Entrepreneur

P.S. Who knows if the FDIC would revert back to its Mafia-like tactics. You should be prepared if something you do puts your bank account into a “high risk” category. Become a GWP Insiders member today and learn the strategies for diversification offshore while keeping your options (and exits) open…

Become an Insider Today (Save 70%)

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Comments

  1. Jack Worthington says

    It is good for business to sever relations with the government and the fed bank. Block Chain and cryptocurrencies work and remove the criminal fiat currency system from its evil control. The Fed Bank is another “Octopus” ala Frank Norris’s story about the railroad barons of corruptifornia. The “Octopus” of central banking has financed wars of mass slaughter and the ruination and pains from economic recessions and depressions. Extricating one’s self from the fiat currency and central banks is a very good thing.

  2. Jack Worthington says

    So, if the government drives businesses, entrepreneurs, to choose cryptocurrencies and Block Chain to transact business then is that so bad? Extricating one’s self from the “Octopus” of Central Banking is actually a good thing. Yes, Frank Norris and “The Octopus” story about the Railroad owners/managers/supervisors wickedness was educational. Yes indeed, we need another dozen Frank Norris authors to expose the fraud of the central banking system and their looting mechanism of fiat currency. Yes, many have written but people are not well informed. I recommend The Creature From Jekyll Island by G. Edward Griffin for those who are not acquainted with the diabolical nature of fiat currency and the consort of evil, the Fed Government and the Federal Reserve Bank.

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