CitiBank Announces It Will Force New Gun Control Rules On Its Customers
Citibank announced Thursday that it will start requiring customers to abide by its new gun control rules, telling those who refuse that they will “work with them to transition their business away from Citi.”
The policy will apply company-wide to Citigroup’s small business, commercial, and institutional clients that borrow funds, use banking services or raise capital through the bank.
CitiGroup stock had fallen almost 4% since the announcement, as of the writing of this article.
In an email to employees, Citigroup Chief Executive Officer Mike Corbat detailed new policies applying to “small business, commercial and institutional clients, as well as credit card partners.”
The policy is ostensibly “designed to respect the rights of responsible gun owners while helping keep firearms out of the wrong hands,” Corbat claimed.
The company said that it will bar companies that it does business with from selling guns to people under the age of 21. It will require customers to undergo background checks for all firearm purchases.
Citigroup also banned its clients from selling high-capacity magazines and bump stocks.
Citigroup also is requiring similar compliance from business partners that issue co-brand or private label credit cards through the bank.
Additionally, potential clients would be screened to ensure their businesses adhere to the new policy.
If retail clients refuse to enact Citi’s “best practices over the coming months,” they are free to part ways with the bank, Corbat wrote.
Citibank announced Thursday that it will start requiring clients to place some restrictions on gun sales. This includes banning the sale of firearms to anyone under the age of 21. The bank will also require retail clients to only sell guns to individuals who have passed a background check. They cannot sell bump stocks or high-capacity magazines.
The company announced the changes in a statement condemning gun violence.
The statement also slammed lawmakers for failing to pass gun control measures.
“We have waited for our grief to turn into action. Waited to see our nation adopt common-sense measure that would help prevent firearms from getting into the wrong hands. That action has sadly never come. As the weeks pass after the most recent mass shooting, it appears we are stuck in the same cycle of tragedy and inaction,” the statement read.
“We want to do our part as a company to prevent firearms from getting into the wrong hands.”
Citigroup’s Executive Vice President, Edward Skyler, said in a blog post Thursday that the decision was about implementing “common-sense measures that would help prevent firearms from getting into the wrong hands.”
“For too many years, in too many places, our country has seen acts of gun violence that have resulted in heartbreaking losses. As a society, we all know that something needs to change. As a company, we feel we must do our part.”
The new policy will not prevent Citi cardholders from using their credit cards to buy firearms or ammunition.
Last Year, Citibank paid $69.5 million after being caught up in the the Forex trading scandal.
Citibank and its competitors had “a general agreement to collude on prices for bids, offers and bid-offer spreads for the spot trades in relation to currency trading involving US dollar / rand currency pair”.
Citbank and its competitors also “manipulated the price of bids and offers through agreements to refrain from trading and creating fictitious bids and offers”.
Citigroup is the first major bank to announce a new formal policy since the Florida massacre.
Until Citigroup’s announcement, most U.S. financial institutions remained on the sidelines in the disagreements over gun control.
Bank of America and investment giant BlackRock both committed to speaking with gun makers about their policies.
Walmart and Dick’s Sporting Goods said last month they would raise the minimum age for firearm purchases to 21. Companies including Delta Air Lines, United Airlines, Hertz, Enterprise and MetLife have ended partnerships with the National Rifle Association.
I am all for it! I believe that a business should be free to pick its customers and make its own rules!
However, as long as a customer is obeying the law, it is not a wise business practice to stick your nose into their business. This is a feel good gun control move by CitiGroup. It will not save any lives. The gun control rules will affect their stockholders.
But I would imagine that they will lose some business over this. There are a lot of patriot minded, 2nd Amendment customers who will vote with their wallet.
I don’t use CitiBank. Probably never will. Nothing to do with Gun Control.