It is no secret in the pro-2A community that many corporations have taken anti-gun positions or implemented policies detrimental to our right to arms. Promoting or contributing to organizations dedicated to banning firearms, backing candidates for office who oppose the Second Amendment, or opposing self-defense legislation like improvements to carry laws are just a few of the things some corporations have done to show they do not respect the rights of law-abiding gun owners.
But among the most egregious and potentially damaging attacks on the Second Amendment by corporations came from the world of banking.
In 2018, we reported on growing evidence that some of America’s financial elite wanted to create a world in which America’s public policy decisions emanate from corporate boardrooms in Manhattan rather than from citizens and their elected officials. This was demonstrated when both Citigroup and Bank of America announced changes to their corporate guidelines aimed at preventing law-abiding Americans from exercising their constitutional rights.
Citigroup’s (Citi) 2018 policy established that the nation’s fourth largest bank (at that time) would withhold business from companies that failed to sufficiently curtail the Second Amendment rights of their customers. Specifically, the policy required “new retail sector clients or partners” to refrain from selling standard-capacity magazines, to prohibit the sale of firearms to law-abiding adults aged 18 to 20 years old, and to ignore a vital statutory safety valve provision that permits a Federal Firearms Licensee (FFL) to transfer a firearm three days after an “instant” background check has been initiated if it remains unresolved. Citi also stated that it would further scrutinize the firearms manufacturers with whom they do business.
In a March 22, 2018, blog post announcing Citi’s policy change, Citigroup Executive Vice President of Global Public Affairs Ed Skyler lamented that politicians had been too reticent to trample upon the rights of their constituents, and that this respect for the U.S. Constitution prompted Citi to act. Before joining Citigroup, Skyler worked for the administration of New York City Mayor and gun control financier Michael Bloomberg.
Skyler also made clear that Citi intended to “convene those in the financial services industry and other stakeholders” to push their anti-gun agenda. In a sentence that might have piqued the interest of antitrust regulators, Skyler noted that the financial giant “hope[s] to leverage [the] collective action” of financial institutions in order to foist their restrictions on “all who sell firearms.” Using typical gun control advocate vernacular, Skyler referred to Citi’s new restrictions as “common-sense.”
Pro-gun members of Congress quickly responded, demanding answers and accountability.
U.S. Sen. John Kennedy (R-LA) led the way with a March 29, 2018, letter to then-Citigroup CEO Michael Corbat. Kennedy expressed “significant concerns” about the bank’s new policies and asked to be provided with “the specific number of entities in Louisiana which stand to lose banking services as a result of [Citigroup’s] increased scrutiny on law-abiding businesses.” He pointedly reminded the bank, “It feels like yesterday when Citi received nearly half a trillion dollars in taxpayer-backed guarantees and cash after putting the entire financial system at risk,” a move Kennedy called, “the largest government bailout in American history.” Kennedy encouraged Citigroup to be a good corporate citizen by refocusing on business decisions, including “addressing apparent shortcomings like overcharging credit card interest rates to account holders and compliance with U.S. anti-money laundering laws.”
Also joining the effort were 16 Congressmen led by then-U.S. Rep. Todd Rokita (R-IN), who, on April 11, 2018, wrote to Emily W. Murphy, then-head of the General Services Administration, asking her to reconsider a $700+ billion contract with Citi to help implement the federal charge card system, SmartPay 3. The letter noted that the bank’s new firearm policies “run counter to laws and regulations passed by Congress, and they infringe and discriminate against an individual’s Second Amendment rights.” Such policies, the signatories opined, “should not be endorsed by our federal government,” which instead should “do business with companies that respect all of our constitutional rights, including the Second Amendment.” The letter urged the GSA to “take all necessary steps to review and terminate its contract with Citibank unless they rescind their guidelines … .”
Federal lawmakers also responded by introducing several pieces of legislation to protect the firearm and ammunition industries from such virtue signaling corporate policies that attempt to discourage constitutionally protected Second Amendment activity. The latest iteration of the Firearm Industry Non-Discrimination Act (FIND Act), HR 45, was introduced in January by U.S. Representative Jack Bergman (R-MI). U.S. Senator Steve Daines (R-MT) also introduced a companion bill in the U.S. Senate (S. 137).
Several states have actually enacted their own versions of the FIND Act, including AL, FL, GA, ID, LA, MT, TX, UT, & WY.
The FIND Act would prevent corporations and other entities that receive government contracts from discriminating against the firearm and ammunition industries. This is especially important in relation to large financial institutions, which have wielded their size and influence in an attempt to restrict firearm manufacturers from conducting constitutionally protected business at the behest of gun-grabbing activists.
NRA-ILA has supported these measures at the state level and commended Representative Bergman this past February for his leadership on this issue. “The National Rifle Association applauds Representative Bergman’s efforts to prevent Americans’ tax dollars from going to corporations that are looking to curtail the Second Amendment,” said John Commerford, Executive Director of NRA-ILA. “This bill would prevent corporations from profiting from taxpayer funds while simultaneously using their power in the marketplace to undermine the Second Amendment rights of law-abiding citizens.”
In addition to the FIND Act, Senator Kevin Cramer (R-ND) has reintroduced the Fair Access to Banking Act, S. 401. The Fair Access to Banking Act would prohibit financial institutions like Citi from denying or limiting their services to constitutionally protected industries like those involved in the Second Amendment. Congressman Andy Barr (R-KY) has also introduced the House companion version of the Fair Access to Banking Act where he has been joined by 67 of his colleagues (H.R. 987).
NRA-ILA has long supported Senator Cramer and Representative Barr’s efforts in this fight. “Social and political motivations should have no place in banking decisions. Senator Cramer and Representative Barr’s Fair Access to Banking Act would guarantee the right of all lawful industries to access federally-secured banking services,” said John Commerford, Executive Director of the NRA Institute for Legislative Action. “We thank Senator Cramer and Representative Barr for their leadership on this very important issue.”
While the FIND Act and the Fair Access to Banking Act have yet to pass this Congress, it appears that Citi may have changed its tune on the lawful firearms industry.
Last week, the banking giant announced it was changing its policy on firearms, stating, “We will update our employee Code of Conduct and our customer-facing Global Financial Access Policy to clearly state that we do not discriminate on the basis of political affiliation in the same way we are clear that we do not discriminate on the basis of other traits such as race and religion.”
“We also will no longer have a specific policy as it relates to firearms. Our U.S. Commercial Firearms Policy was implemented in 2018 and pertained to sale of firearms by our retail clients and partners. The policy was intended to promote the adoption of best sales practices as prudent risk management and didn’t address the manufacturing of firearms.”
While this seems to be good news, there remains a little caution, if not skepticism, from those most directly affected by Citi’s prior policies. The Washington Examiner reported the National Shooting Sports Foundation (NSSF) response was, “Trust, but verify.”
NSSF’s senior vice president and general counsel Larry Keene commented, “We are guardedly optimistic. We will see if this is a substantive change in policy or just a superficial change while Citigroup continues to discriminate in private beyond closed doors, where it is harder for the public to detect.”
As for NRA, John Commerford stated, “The NRA welcomes the news that Citigroup has rescinded its discriminatory debanking policies targeting gun manufacturers and dealers. Citigroup and other banks were pressured by left-wing activists to implement these measures in an attempt to restrict the lawful sale of firearms.”
Only time will tell if the Citi announcement truly represents a significant change in policy. It’s statement announcing the change tried to justify the prior policy as “intended to promote the adoption of best sales practices,” and mentioned “[m]any retailers have been following these best practices….” It is also concerning that the new policy continues to suggest (again, in the lingo of the anti-gun advocacy crowd) that gun control is still the preferable outcome: “[W]e hope communities and lawmakers will continue to seek out ways to prevent the tragic consequences of gun violence.” At least Citi finally seems to recognize those decisions and responsibilities rest with the elected branches of government.
Overall, however, NRA considers the new policy an encouraging first step, while we remain committed to passing both the FIND Act and the Fair Access to Banking Act in this Congress, and look forward to President Trump signing them into law.
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