Last week, Senator John Kennedy (R-LA) introduced the “No Red and Blue Banks” Act, legislation that would prevent banks from turning away businesses based on their company’s policies on social issues.
Sen. Kennedy’s proposed legislation comes just a few months after financial giant Citigroup announced it would preclude it’s clients from selling a firearm to anyone under the age of 21, and has considered monitoring the sale of firearms through its internal payment systems. The bill also seeks to prevent actions recently taken by Bank of America, who announced it would restrict lending to companies that manufacture AR-15 style rifles.
Banks fall under the oversight of the U.S government, and defenders of the Second Amendment argue that it is simply not the banks’ place to actively punish businesses that do not agree with the banks’ social philosophies. These actions bypass the will of the voters who have elected representatives to debate the issues, not corporations who have injected themselves into the debate.
These banks also appear to be picking and choosing which angles of the issue best meets their own needs. Bank of America still conducts businesses with international organizations and governments who have a poor human rights records in areas involving child labor, women’s rights, and the environment. BOA is also still doing business with larger retail companies that sell AR-15 style rifles.
Firearms manufacturers are among the most reliable companies to do business with. The AR-15 the most popular firearm ever sold and propels a half a billion dollar market. These manufactures have also developed designs that have been implemented by law enforcement and military, protecting both those in the line of duty and the people they protect.
And the irony is that these type of activist moves invite further scrutiny and heavy-handed regulation by government officials. In fact Sen. Kennedy is following a similar path as the Louisiana State Bond Commission, which recently barred both Citigroup and Bank of America from participating in efforts to fund highway projects in the state.
We believe that the free market remains the best solution to determining what should be bought and sold, especially in regard to lawful products and services. Having financial institutions or other powerful entities artificially limiting the right of consumers is, in the end, not a productive solution, and will certainly do little to mitigate the tragic crimes that preceded the moves by BoA and Citi.
