Allissa Kline
4 min read
In This Article:
Citigroup is scrapping a pro-gun-safety policy and updating certain policies to bar discrimination based on political affiliation — moves that come as conservative groups flex their power in Washington, D.C.
The megabank, which established firearms sales restrictions for its business clients in 2018, told its employees in an internal memo Tuesday that it will "no longer have a specific policy as it relates to firearms." Citi set the policy in the wake of the mass shooting at Marjory Stoneman Douglas High School in Parkland, Fla., where 17 students and staff members were killed.
Citi will also update both its employee code of conduct and its 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," according to the memo from Edward Skyler, Citi's head of enterprise services and public affairs.
The latter move will codify what the company has "long practiced," Skyler wrote.
The changes come amid mounting pressure from the Trump administration and conservative groups, which have accused banks of dropping customers based on their conservative political views. So-called "debanking" has become a hot-button issue in recent months.
In February, Sen. Kevin Cramer, R-N.D., and a member of the Senate Banking Committee, reintroduced legislation that would penalize banks and credit unions with more than $10 billion of assets "if they refuse to do business with any legally compliant, credit-worthy person," according to a press release from Cramer's office.
The Senate bill would also prevent payment card networks from discriminating against qualified customers due to political or reputational considerations. Those who fail to comply with the proposed law would be subject to fines up to $10,000 per violation. Similar legislation has been introduced in the House by Rep. Andy Barr, R-Ky.
"We appreciate the concerns that are being raised regarding 'fair access' to banking services, and we are following regulatory developments, recent executive orders and federal legislation that impact this area," Citi's Skyler wrote. As a result, the bank "took an objective look at our policies and practices with the intent of striking the right balance between our commitment to fair and unbiased access to our products while continuing to manage all risks to the bank appropriately."
