Operation Choke Point forces bank to dump gun store

A Massachusetts gun seller says it’s the latest victim of a federal multiagency task force that is squeezing financing sources for industries deemed “high-risk” by the Obama administration, such as porn stores, drug paraphernalia shops and gun merchants. Powderhorn Outfitters, which sells firearms, archery gear and fishing equipment in Hyannis, Massachusetts, posted in an online forum this week that its longtime bank — TD Bank — had suddenly dropped its account. “TD Bank does not support the Second Amendment and has contacted us here at the Powderhorn to say that due to our involvement in firearms sales, we as a business are no longer welcome to have an account at their bank,” the sporting goods store posted on northeastshooters.com, an online forum for shooting enthusiasts in New England states. “They classify us in the same gray area as the local weed shops sprouting up on the Cape.” Powderhorn said it has moved its business to “a bank that does support the Second Amendment.” The Times reported last week of gun retailers’ complaints that the administration is bypassing Congress and is using increased scrutiny by financial regulators to choke off their lines of credit and squeeze them out of business. Since 2011, the Federal Deposit Insurance Corp. has directed banks to scrutinize the risks of their merchant customers who use payment processors, such as PayPal, for credit card transactions. In addition, the Justice Department has launched “Operation Choke Point,” a credit card fraud probe ensnaring banks that do business with 24 industries deemed “high-risk” by the FDIC...more

This is another example of two things: 1]  The intertwining of gov't in the economy not only distorts markets, it now can result in loss of civil liberties.  The Supreme Ct. says you have an individual right to bear arms, but the FDIC won't allow financing of sellers, and 2]  The unbelievable amount of authority delegated to the executive by Congress.