Barry,
Let me quote again from the Engadget article:
Quote:
Hence the FDIC's new, detailed guidance document for banks, one in which "reputational risk" is now omitted -- thus officially not enough to deny or close an account. The FDIC's categories of "high risk" specify fraudulent goods and services, and tactics "such as aggressive telemarketing or enticing and misleading pop-up advertisements on Web sites."
While "unlawful Internet gambling and the illegal sale of tobacco products on the Internet" are singled out as FDIC "high risk" areas, PayPal's "items that are considered obscene ... [or] certain sexually oriented materials or services" are most definitely not.
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Here is a link to the FDIC Guidelines as revised after the House hearings on Operation Chokepoint. Please find anything regarding "reputational risk" in this document.
https://www.fdic.gov/regulations/exa.../managing.html. And again, the District Court SPECIFICALLY held that Backpage suffered no damage because Visa and MC could deny them processing based on them taking "illegal and pornographic" advertising and the "repuational risks" involved - which the 7th Circuit OVERRULED 3-0. So, once again, your exact argument was rejected by a unanimous panel of Federal Appellate Court Judges.