Dodd/Frank Regulations Stiffles/Crushes Prosperity : Banks Leary of Gov. Crack Down

Is this part of the new regulations stemming from the new Chris Dodd and Barney Frank banking bill that has the banking business spooked? I can't imagine anything coming from these two individuals that isn't anti-free market, anti-business. They are both progressive socialist democrats, and therefore are invested in a new America that demands dependence rather then individual freedom as a way of life.

They, and other progressive democrats like them, believe the new American ideology of absolute control from Washington is best for everyone. For happiness to come to everyone, aggressiveness and free thinking to obtain a better life for themselves and their families  must be suppressed. Real happiness only comes from the collective. Everyone must be no different then anyone else.

"Each according to their abilities, each according to their needs". Karl Marx. 

Banks Steer Clear of Risky Customers
Source: Robin Sidel and Andrew R. Johnson, "U.S. Banks Steer Clear of Sensitive Customers," Wall Street Journal, January 28, 2014.

February 6, 2014

Banks are steering clear of risky customers, says the Wall Street Journal.

• While medical marijuana merchants or virtual-currency companies may be legal, banks are showing a hesitancy to get involved with such customers.
• Facing ever-growing regulations and federal scrutiny, U.S. banks are unwilling to enter into arrangements with customers that could "be perceived as risky, unsavory or detrimental to the social fabric," according to Andy Schmidt, research director at CEB TowerGroup.

Industry officials have said that the potential benefits from working with these businesses are not worth the cost, citing regulatory scrutiny and additional monitoring costs.

• Just last year, J.P. Morgan dumped 2,000 customers in an attempt to reduce its regulatory risk.
• The bank has split from convicts as well as from individuals who have been indicted, and it has ceased doing business with some spouses of foreign leaders.
• The firm has also stopped lending to check-cashing companies and refuses to process transactions for 500 foreign banks.

J.P. Morgan has cut ties with these clients even when there were no indications of wrongdoing. The company had to pay regulators $20 billion in 2013 to resolve compliance issues and avoid lawsuits, and it has had to put hundreds of employees to work on settling these issues.

J.P. Morgan is not alone in its decision to end these types of relationships. Bank of America began ceasing operations with payday lenders last year, and Missouri Bank & Trust Co. has stopped services with online lenders, who are increasingly under close regulatory scrutiny. Similarly, Wells Fargo and Bank of America, in addition to other large banks, do not allow credit card customers to gamble online in Delaware, Nevada or New Jersey, even though gambling is legal in those states.