A group of Republican lawmakers are petitioning regulators to more thoroughly distance themselves from a federal strategy that reportedly pressured financial institutions to terminate their relationships with third-party payment processors. In letters sent Wednesday, U.S. House Committee on Financial Services Chairman Jeb Hensarling (R-TX) and other committee leaders called upon the Federal Reserve, Consumer Financial Protection Bureau (CFPB), Office of the Comptroller of the Currency and National Credit Union Administration to publicly disclaim their participation in Operation Choke Point "or any similar operation." The letters urge the agencies to publish a letter to financial institutions and circulate an internal memorandum...
Republican lawmakers have asked a governmental watchdog to investigate the U.S. Treasury Department's anti-money laundering and sanctions enforcement efforts in light of allegations that bank examiners may have improperly requested account closures.
The Federal Deposit Insurance Corp. did not play a substantive part in the U.S. Justice Department's controversial crackdown on third-party payment processors, the agency's watchdog office said Thursday.
The Federal Deposit Insurance Corp. has failed to stop banks from automatically severing relationships with clients that process payments for pawnshops, payday lenders and other purportedly high-risk vendors, lawmakers said Tuesday.
Finding themselves locked out of some large U.S. banks because of compliance concerns, third-party payment processors are increasingly turning to small- and mid-sized institutions for financial services, say consultants.