WASHINGTON - The House Judiciary Committee and its Weaponization Select Subcommittee, led by Chairman Jim Jordan, escalated their ongoing inquiry into privacy violations stemming from unauthorized data sharing practices between private entities and federal law enforcement agencies. This escalation came in the form of a subpoena issued to Bank of America and CEO Brian Moynihan, demanding information regarding the bank's provision of sensitive customer financial data to the FBI without legal orders or customer consent. The transactions under scrutiny are related to events at the U.S. Capitol on January 6.
On Thursday, Chairman Jordan had subpoenaed Bank of America over illicitly providing customer transaction data to the FBI without judicial authorization, as acknowledged by Steven Jensen from the Domestic Terrorism Operations Section for January 5-7, 2021 events. Despite this, Bank of America continues to assert adherence to legal standards in its operations with authorities under the Trump Administration's tenure.
Earlier this year, on May 25, the Judiciary Committee had sought voluntary cooperation from Bank of America to examine its relationship with the FBI. Despite Bank of America's claim that their actions were supported by a Treasury Department initiative, subsequent findings indicated an unsanctioned approach led by Steven Jensen of the FBI's Domestic Terrorism Operations Section. Jensen later withdrew the information obtained from Bank of America due to an absence of federal criminal conduct.
Evidence provided by the Judiciary Committee today suggests direct FBI outreach to Bank of America circumventing legal protocols. This challenges Bank of America's stance on adhering to financial legislation typically associated with the U.S. Department of Treasury interactions, not unilateral FBI requests.
Congress is also scrutinizing Bank of America's reliance on both the Anti-Money Laundering Act and Bank Secrecy Act as justifications for such data exchanges. The legislative body is calling for a thorough review of Bank of America's "filing" emailed to the FBI. This investigation aims to address significant privacy concerns and guide potential legislative reforms designed to protect American citizens' financial privacy against unwarranted federal intrusion.
In addition to Bank of America, further inquiries include subpoenas for Citibank, investigating financial institutions' collaboration with the FBI on American citizens' financial data collection. These investigations were highlighted by a whistleblower's testimony on non-restricted datamining activities regarding firearms transactions discussed by Massie of the Weaponization Subcommittee.
InvestingPro Insights
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From InvestingPro Tips, it's clear that BAC has demonstrated financial resilience, raising its dividend for ten consecutive years, and maintaining dividend payments for an impressive 53 years. This is a testament to its prominence in the banking industry, despite recent scrutiny.
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