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Muddling Through

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Member since: Fri Jun 13, 2014, 07:54 AM
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Government "clarifies" position after "confusion"

"Federal regulators have backed away from pressuring banks to stop doing business with legal enterprises that the Obama administration labeled “high risk” — including selling guns, making payday loans, and trading in rare coins.

Late last month, the Federal Depositors Insurance Corporation told banks that it had removed a list of 30 examples of “high risk” activities from the agency’s website, stating its list had “led to misunderstandings.”

By “misunderstandings,” FDIC apparently meant that its guidance led to sudden decisions by banks across America to close accounts with customers that fell under any of the listed categories.

If they didn’t close the accounts, bank officers thought, they could be subject to federal audits or other investigations.

FDIC spokesman Andrew Gray, in an interview this week with The Daily Signal, said:

The FDIC recognizes the confusion about the meaning and significance of these lists of examples of merchant categories, including the potential for the misperception that the merchant categories were specifically prohibited or discouraged."

So, was there really just "confusion" regarding the government pressuring banks to close accounts of lawful businesses, or did they just get caught?
Posted by Muddling Through | Sat Aug 16, 2014, 08:22 AM (12 replies)
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