Reps Push Back on Community Bank Regulations, Operation Choke Point
At a hearing earlier this week, the House Financial Services subcommittee on Financial Institutions and Consumer Credit examined nearly a dozen bills that Republicans say would provide regulatory relief to community banks. At the hearing, community bankers told lawmakers they are being pushed out of business by new rules written in the wake of the financial crisis that are better suited for big banks. Democrats on the panel warned against giving banks a “get out of jail free card.” Republican members also took the opportunity to express concerns with the Justice Department's Operation Choke Point, which they say requires banks to target customers that operate businesses which federal regulators do not like, even if they are not illegal.