Legislation defining the federal government’s procedure to force a bank to end its relationship with a suspicious business has been introduced. The Financial Institution Customer Protection Act — a reaction to Operation Choke Point — prohibits federal banking regulators from requesting or ordering financial institutions from terminating a customer’s account unless the regulator has material reason and writes it down.

“This legislation is straightforward by stating that federal banking agencies must put in writing any suggestion to terminate a customer’s banking account and by requiring agencies to define terms by which they regularly use in the examination process,” said U.S. Rep. Blaine …read more