The Bank of America will no longer lend money to manufacturers of no-no rifles, says a major Democrat in the company. The move was announced on a business television program and an executive announced that the policy is being handed down because the company doesn’t want to “underwrite or finance military-style firearms.”
According to the executive, the company has had “intense conversations over the last few months” with the gun makers on their client list and that “It’s our intention [to not] finance these military-style firearms for civilian use.”
The move was announced by the Bank of America’s vice chair Anne Finucane on Bloomberg TV.
Company Lends To Remington, Vista Outdoor, Sturm Ruger
Finucane said that while the company has “enjoyed” a relationship with gun manufacturers, they will “reduce” the portfolios associated with those businesses but are expecting them to “do something else” instead of produce Armalite-inspired rifles.
So far, Finucane claims that reaction from gun companies has been “mixed.”
National Shooting Sports Foundation Reacts
The NSSF is a firearms industry lobby group and they estimate that the gun and ammunition industry is worth approximately $51.1 billion globally. The group is criticizing the Bank, saying that it’s wrong to label semiautomatics “military-style.”
“We as an industry would welcome the opportunity to sit down with Bank of America executives and explain our industry’s perspective to discuss what really would work to keep firearms out of the hands of those who should not have them.”
CEO Brian Moynihan
Starting in 2010, the CEO of the Bank of America has been Brian Moynihan who was born in Ohio to a large Irish Catholic family. He earned a law degree and began working at banks starting in 1993 in the legal department. After a merger in 2004, he joined the BoA as the president of global wealth and investment management.
In the summer and fall of 2011, the BoA made headlines for accepting a $5 billion investment from Warren Buffett while also proposing a $5 monthly fee for debit card users. As a result of the fee proposal, there was a 20% increase in the number of account closures over a 3 month period.
In 2012, BoA faced criticism along with several other CEOs from Sen. Bernie Sanders in a report titled “Top Corporate Tax Dodgers,” which alleged that under Moynihan, the BoA paid no income tax in 2010 and received a tax refund of almost $2 billion despite declaring $4.4 billion in profits.
Vice Chair Anne Finucane
Born in Boston, Finucane has been working in marketing and corporate affairs with banks since 1995. She was the global chief of strategy and marketing for the Bank of America after the subprime mortgage crisis and is also involved in the BoA’s environmental and social governance committees. She is on the board of the JFK Library Foundation.
Finucane is married to Michael Barnicle, a journalist who has contributed to left wing outlets including MSNBC’s Morning Joe, Time, Newsweek and The Huffington Post. He was fired from his position with the Boston Globe after lying about cancer-stricken children and for stealing jokes.
Citibank Pulling Service to Gun Sellers
At the end of March, Citibank’s CEO Mike Corbat announced that his bank would be handing down new policies that will apply to commercial clients. As part of their new firearms policy — banks shouldn’t have a gun policy! — they will require that any gun seller that uses a Citibank account will be barred if they are found to be selling firearms to anyone under the age of 21. As well, they have banned their business clients from dealing bumpstocks or “high capacity magazines,” which are two issues that have been at the forefront since the Las Vegas massacre.
Remington In Bankruptcy – Under Trump, Americans No Longer Panic Buy Guns
Earlier this year gun manufacturer Remington announced that they had declared bankruptcy. They had expected their financials to turn out in 2016, but after Donald Trump won the election, they had not seen the surge in gun sales that was to be expected when Democrats win elections. Gun owners feel safe that Trump will not restrict the sale of firearms, and now makers are scrambling to address low sales.
Sources: Staten Island Live, Bloomberg, Wikipedia, CNBC, The Hill