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Undue federal pressure is responsible for the tendency of U.S. banks to sever ties with entire categories of high-risk clients in recent years, according to U.S. lawmakers, state supervisors and financial services industry representatives. The alleged overreach that fueled the “de-risking” trend against third-party payment processors, or TPPPs, money services businesses and other compliance-intensive banking clients still impacts small businesses years after it began, witnesses and members of the House Financial Service Committee said in a hearing Thursday. The hearing represented the latest chance for U.S. legislators and other critics to sound off against Operation Choke Point, an Obama administration-era,...