What is Debanking and Why Should you Care?
Segment # 277
Operation Chokepoint started under Obama as a way to control what they perceived as illicit business. The concept is simple choke off the financial services required to operate a business. Operation Chokepoint 2.0 was employed by Biden against tech companies that didn’t support their ideology. There was no appeal. You basically were put out of business. This, in part, accounts for some of the support Trump got from the tech community. Many entrepreneurs were debanked in operation chokepoint 2.0. without warning, explanation or ability to appeal. Excommunicado. Government mafiosi from the Treasury and OCC called and threatened banks to debank specific people and companies.
This sort of government activity can not be permitted in a democracy
Debanking refers to the practice where banks or financial institutions terminate or restrict an individual's or organization's access to banking services. This can include closing accounts, refusing to open new accounts, or limiting the use of banking facilities without clear explanation or due process. Here are some key points about debanking:
Reasons for Debanking: Often, banks cite reasons like financial crime risks (e.g., money laundering, fraud), reputational risks, or non-compliance with regulations. However, sometimes the reasons are not transparent or can be perceived as arbitrary, especially when linked to an individual's or group's political views or activities.
Impact: For individuals or businesses, losing banking services can be severely disruptive. It can affect personal finances, business operations, and can lead to social exclusion if banking is essential for daily transactions.
Controversy: Debanking has sparked debate over freedom of speech, privacy, and discrimination. Critics argue it can be used as a tool for censorship or blacklisting, particularly when it involves political or social activism.
Regulatory Response: In some jurisdictions, there's a push for more oversight to ensure banks do not debank without legitimate and transparent reasons. This includes rights to appeal decisions or requirements for banks to provide clear justification for debanking actions.
Examples: Notable cases have involved public figures, organizations, or sectors like cryptocurrency firms, where banks might perceive higher risks or regulatory pressures.
Debanking raises significant ethical, legal, and societal questions about the balance between financial institutions' risk management and the rights of individuals or entities to access basic financial services.
Operation 2.0 may be going after crypto. Again potentially this is another example where the governments pressures financial institutions into debanking companies
