Operation Choke Point was also derided in an op-ed in American Banker magazine by William M. Isaac, former chairman of the FDIC.
In 2011, the FDIC released a report titled “Managing Risks in Third-Party Payment Processor Relationships.”
Its two branches were taken over by Ameris and the FDIC made depositors whole to the extent of their insurance.
“The proportion of banks that were unprofitable fell to 8.4 percent from 10.6 percent a year earlier,” the FDIC reported.
Two weeks later, the FDIC seized Washington Mutual and wiped out the bondholders.
