The Federal Reserve made an internal directive to its member banks to be cautious when dealing with clients seen as “controversial,” according to a classified document.
The document, which was obtained by Senator Cynthia Lummis, came from the Fed’s Internal Implementation Handbook. This comes as Sen Lummis has been vocal and pushing for accountability and oversight at the Federal Reserve.
According to a post on X, the document provides a guide to the Federal Reserve’s staff, who are responsible for reviewing applications as well as issuing access to “master accounts.” Sen. Lummis described the new revelation as an “explicit and undeniable proof of Chokepoint 2.0.”
Explicit and undeniable proof of Chokepoint 2.0. pic.twitter.com/Y75IJxrmY1
— Senator Cynthia Lummis (@SenLummis) February 5, 2025
The revelations have raised concerns in the industry with fears the Fed is discriminating institutions or individuals due to political reasons or because of being risk-related. There are fears this directive might discriminate against genuine businesses that appear controversial.
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