U.S. Rep. Blaine Luetkemeyer (MO-03) today sent a letter to Federal Deposit Insurance Corporation (FDIC) Chairman Martin Gruenberg to follow-up on yesterday’s meeting regarding the agency’s involvement in Operation Choke Point.

The letter from Luetkemeyer reiterates the importance of the FDIC conducting a full review of senior staff members who have, with the Chairman’s approval, clearly committed wrongdoing.

“There is neither doubt nor denial that numerous members of your senior staff have allowed personal and political views to interfere with the important work of the FDIC,” Luetkemeyer stated in the letter. “Their actions have not only called into question their ability to appropriately carry out their duties, but also have exposed your entire agency to what many of your staff would refer to as significant ‘reputational risk.’”   

In addition, Luetkemeyer urges Chairman Gruenberg to use his authority to alter and improve the FDIC’s examination process in an effort to create more transparency and reign in these “vigilante activists” FDIC examiners and senior staff. Luetkemeyer’s latest legislation targeted at Operation Choke Point, the Financial Institution Customer Protection Act, includes language that would dictate that federal banking regulators cannot suggest, request or order a financial institution to terminate a banking relationship unless the regulator has material reason. Moreover, the legislation states clearly that ‘reputational risk’ alone is not reason to order account terminations.

“I appreciate Chairman Gruenberg’s willingness to meet and it is my sincere hope he acts swiftly to bring punitive measures against FDIC staff members that have violated public trust,” Luetkemeyer said. “I will continue to hold the FDIC accountable for its actions and wrongdoing, which is why I requested a meeting with Chairman Gruenberg and Vice Chairman Tom Hoenig during the second week of January so they can report back to me and I can hear firsthand the progress made in bringing Operation Choke Point to an end once and for all. If the FDIC has not made substantial headway on these efforts, I will pursue new legislation to ensure this behavior does not happen again.”