Latest news with #GlobalFinancialAccessPolicy
Yahoo
2 days ago
- Business
- Yahoo
Citigroup Reverses Firearms Policy After Trump Criticism
A street view of a Citibank branch in San Francisco, Calif., on May 13, 2025. Credit - Smith Collection—Getty Images Citigroup has reversed its policy restricting banking services to retail clients selling firearms, ending the practice that was put into place in 2018. In a statement shared on June 3, the bank said that the decision had been made in response to concerns raised over 'fair access' to banking services. As a result, Citigroup said it would 'no longer have a specific policy as it relates to firearms.' The reversal comes after criticism from President Donald Trump and other conservatives regarding 'de-banking,' citing what they believe to be unfair practices from U.S. banks preventing conservatives from using their services. Addressing the World Economic Forum in Davos virtually in January, Trump said: 'Many conservatives complain that the banks are not allowing them to do business,' taking aim at U.S. bank CEOs. Here's what to know about Citigroup's reversal and how it fits into wider discussions about banks and politics in America. Citigroup outlined the specifics of its previous restrictions, saying: '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.' Since 2018, Citigroup had restricted its services to retail clients selling firearms, requiring them to adhere to three practices. Under the policy, 'new retail sector clients or partners,' clients could not sell firearms to those who hadn't passed a background check, had to restrict the sale of firearms for individuals under 21, and could not sell bump stocks or high-capacity magazines. In its June 3 update, the bank said that after reviewing its policies, it will be updating its "Employee Code of Conduct" and its "customer-facing Global Financial Access Policy," to clearly state that the Citigroup does "not discriminate on the basis of political affiliation." 'These changes reinforce our commitment to serve all clients fairly, and we will continue to work with regulators and elected officials on ways to improve transparency and trust in the banking sector,' the statement continued. The banking service introduced new restrictions in March 2018 following a shooting at Marjory Stoneman Douglas High School in Florida on Feb. 14 of that year, which left 17 people dead. The shooter, Nikolas Cruz, aged 19 at the time, was able to obtain firearms after a background check, despite previous warning signs. Both Cruz's age and circumstances were addressed in Citigroup's firearm policy. Not allowing retailers to sell bump stocks was also included in the bank's 2018 policy, after the device was used during a mass shooting in Las Vegas in 2017. A bump stock allows semi-automatic rifles to fire at a higher rate, and were banned by the Trump Administration in December 2018. However, the U.S. Supreme Court struck down this ban in 2024. After the shooting in Parkland, Florida, investment management firm BlackRock also announced that it would be asking for further details and information on business practices from firearms manufacturers and retailers. In April 2018, Bank of America said that it would be restricting firearms-related business and would stop lending money to manufacturers that make military-inspired weapons to be used by civilians. In particular, Bank of America started to wind down relationships with manufacturers that produced AR-15 style rifles that have been used in mass shootings. In 2024, Bank of America loosened some of its restrictions surrounding lending to the firearms and energy industries, amid pressure from politicians in Texas and Florida. Criticism amongst conservatives and Republicans have long been aimed at banking institutions for imposing restrictions on firearms and other issues. In 2022, a number of conservative-led states considered a number of new bills, with some passing, penalizing banks for such policies. According to Reuters, JPMorgan Chase, Bank of America, and Goldman Sachs were all sidelined by state law that barred firms from the municipal bond market if they were found to 'discriminate' against the firearms industry in the state. In April 2024, over a dozen Republican state attorneys general addressed a letter to The Bank of America, raising their concerns with the bank's 'de-banking policies and practices threaten the company's financial health, its reputation with customers, our nation's economy, and the civil liberties of everyday Americans.' Within the letter, Bank of America was criticized for 'systemic biases' against political views. The letter cited a report in which the bank is said to have shared a list with the FBI of anyone who had bought a firearm with a credit or debit card from the bank in Washington, D.C., in the days surrounding the Capitol Riots on Jan. 6, 2021. 'We are shocked that Bank of America would so cavalierly disregard its customers' privacy and their First, Second, and Fourth Amendment rights at the behest of the federal government,' the letter continued. Shortly after his inauguration in January, Trump launched criticism at banks, in particular at the Bank of America and JPMorgan Chase, during a virtual appearance at the World Economic Forum in Davos. Speaking directly to Bank of America CEO Brian Moynihan, Trump said: 'The Bank of America, they don't take conservative business… you, Jamie (Dimon, CEO of JPMorgan Chase) and everybody, I hope you're going to open your banks to conservatives because what you're doing is wrong.' In response, Bank of America said that it 'welcomes conservatives' as part of the 70 million customers that it serves. 'We would never close accounts for political reasons and don't have a political litmus test,' the bank said in a statement after Trump's remarks. Elsewhere, the Trump Organization sued Capitol One in March, accusing the bank of closing hundreds of accounts belonging to the company. In its complaint, the Trump Organization said it believes 'that Capital One's unilateral decision came about as a result of political and social motivations and Capital One's unsubstantiated, 'woke' beliefs that it needed to distance itself from President Trump and his conservative political views.' The complaint argued that Capitol One's decision was 'part of a growing trend by financial institutions in the United States of America to cut off a consumer's access to banking services if their political views contradict with those of the financial institution.' Capitol One responded, requesting that the lawsuit be thrown out, and in turn arguing that the Trump Organization's complaint 'fails to provide any factual or legal support for the claims asserted, requiring dismissal on several grounds.' Contact us at letters@ Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Time Magazine
2 days ago
- Business
- Time Magazine
Citigroup Reverses Its Firearms Policy Months After Trump Called Out U.S. Banks. Here's What to Know
Citigroup has reversed its policy restricting banking services to retail clients selling firearms, ending the practice that was put into place in 2018. In a statement shared on June 3, the bank said that the decision had been made in response to concerns raised over 'fair access' to banking services. As a result, Citigroup said it would 'no longer have a specific policy as it relates to firearms.' The reversal comes after criticism from President Donald Trump and other conservatives regarding 'de-banking,' citing what they believe to be unfair practices from U.S. banks preventing conservatives from using their services. Addressing the World Economic Forum in Davos virtually in January, Trump said: 'Many conservatives complain that the banks are not allowing them to do business,' taking aim at U.S. bank CEOs. Here's what to know about Citigroup's reversal and how it fits into wider discussions about banks and politics in America. What firearms policy did Citigroup reverse? Citigroup outlined the specifics of its previous restrictions, saying: '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.' Since 2018, Citigroup had restricted its services to retail clients selling firearms, requiring them to adhere to three practices. Under the policy, 'new retail sector clients or partners,' clients could not sell firearms to those who hadn't passed a background check, had to restrict the sale of firearms for individuals under 21, and could not sell bump stocks or high-capacity magazines. In its June 3 update, the bank said that after reviewing its policies, it will be updating its "Employee Code of Conduct" and its "customer-facing Global Financial Access Policy," to clearly state that the Citigroup does "not discriminate on the basis of political affiliation." 'These changes reinforce our commitment to serve all clients fairly, and we will continue to work with regulators and elected officials on ways to improve transparency and trust in the banking sector,' the statement continued. Why did Citigroup initially put the firearms policy into place? The banking service introduced new restrictions in March 2018 following a shooting at Marjory Stoneman Douglas High School in Florida on Feb. 14 of that year, which left 17 people dead. The shooter, Nikolas Cruz, aged 19 at the time, was able to obtain firearms after a background check, despite previous warning signs. Both Cruz's age and circumstances were addressed in Citigroup's firearm policy. Not allowing retailers to sell bump stocks was also included in the bank's 2018 policy, after the device was used during a mass shooting in Las Vegas in 2017. A bump stock allows semi-automatic rifles to fire at a higher rate, and were banned by the Trump Administration in December 2018. However, the U.S. Supreme Court struck down this ban in 2024. After the shooting in Parkland, Florida, investment management firm BlackRock also announced that it would be asking for further details and information on business practices from firearms manufacturers and retailers. In April 2018, Bank of America said that it would be restricting firearms-related business and would stop lending money to manufacturers that make military-inspired weapons to be used by civilians. In particular, Bank of America started to wind down relationships with manufacturers that produced AR-15 style rifles that have been used in mass shootings. In 2024, Bank of America loosened some of its restrictions surrounding lending to the firearms and energy industries, amid pressure from politicians in Texas and Florida. What grievances have Trump and high-profile conservatives aired with U.S. banks? Criticism amongst conservatives and Republicans have long been aimed at banking institutions for imposing restrictions on firearms and other issues. In 2022, a number of conservative-led states considered a number of new bills, with some passing, penalizing banks for such policies. According to Reuters, JPMorgan Chase, Bank of America, and Goldman Sachs were all sidelined by state law that barred firms from the municipal bond market if they were found to 'discriminate' against the firearms industry in the state. In April 2024, over a dozen Republican state attorneys general addressed a letter to The Bank of America, raising their concerns with the bank's 'de-banking policies and practices threaten the company's financial health, its reputation with customers, our nation's economy, and the civil liberties of everyday Americans.' Within the letter, Bank of America was criticized for 'systemic biases' against political views. The letter cited a report in which the bank is said to have shared a list with the FBI of anyone who had bought a firearm with a credit or debit card from the bank in Washington, D.C., in the days surrounding the Capitol Riots on Jan. 6, 2021. 'We are shocked that Bank of America would so cavalierly disregard its customers' privacy and their First, Second, and Fourth Amendment rights at the behest of the federal government,' the letter continued. Shortly after his inauguration in January, Trump launched criticism at banks, in particular at the Bank of America and JPMorgan Chase, during a virtual appearance at the World Economic Forum in Davos. Speaking directly to Bank of America CEO Brian Moynihan, Trump said: 'The Bank of America, they don't take conservative business… you, Jamie (Dimon, CEO of JPMorgan Chase) and everybody, I hope you're going to open your banks to conservatives because what you're doing is wrong.' In response, Bank of America said that it 'welcomes conservatives' as part of the 70 million customers that it serves. 'We would never close accounts for political reasons and don't have a political litmus test,' the bank said in a statement after Trump's remarks. Elsewhere, the Trump Organization sued Capitol One in March, accusing the bank of closing hundreds of accounts belonging to the company. In its complaint, the Trump Organization said it believes 'that Capital One's unilateral decision came about as a result of political and social motivations and Capital One's unsubstantiated, 'woke' beliefs that it needed to distance itself from President Trump and his conservative political views.' The complaint argued that Capitol One's decision was 'part of a growing trend by financial institutions in the United States of America to cut off a consumer's access to banking services if their political views contradict with those of the financial institution.' Capitol One responded, requesting that the lawsuit be thrown out, and in turn arguing that the Trump Organization's complaint 'fails to provide any factual or legal support for the claims asserted, requiring dismissal on several grounds.'
Yahoo
3 days ago
- Business
- Yahoo
Citigroup reverses firearms policy after pressure from Trump administration on big banks
A month after the 2018 mass school shooting in Parkland, Florida, Citigroup enacted restrictions for its clients that sold firearms — the first major bank on Wall Street to do so. On Tuesday, the bank rolled back that policy. 'We also will no longer have a specific policy as it relates to firearms,' the company said in a statement Tuesday. 'The policy was intended to promote the adoption of best sales practices as prudent risk management and didn't address the manufacturing of firearms.' The decision comes as the Trump administration alleges that Wall Street is biased against conservatives — a right-wing talking point since more than a dozen state auditors accused Bank of America of 'politicized de-banking' in an open letter last year (de-banking is when a bank closes an account for a customer it deems high risk). At the time, Bank of America said it has 'no political litmus test.' On Tuesday, Citi said it was 'following regulatory developments, recent Executive Orders and federal legislation.' In 2018, Citi said it would ban banking services to businesses that sold firearms to those under 21, those who didn't pass a background check, or sold bump stocks (used by the gunman in the 2017 mass shooting in Las Vegas) or high-capacity magazines. The policy applied to small businesses, commercial and institutional clients, and credit card partners, but did not restrict how individual customers used their cards. Big banks have recently caught the ire of the president as well as the crypto industry. In January at the annual World Economic Forum, President Donald Trump scolded Brian Moynihan, the CEO of Bank of America. 'You've done a fantastic job, but I hope you start opening your bank to conservatives, because many conservatives complain that the banks are not allowing them to do business within the bank,' Trump said. 'You and Jamie and everybody… What you're doing is wrong,' referring to JPMorgan Chase head Jamie Dimon. Citigroup also announced on Tuesday that it will update its employee Code of Conduct and its external 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.' Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
3 days ago
- Business
- Yahoo
Citigroup lifts banking curbs on gun makers and sellers
Citigroup on Tuesday ended a seven-year-old policy restricting how it provides banking services to firearm manufacturers, sellers and resellers. The bank launched the policy in March 2018 after a teenage gunman killed 17 people and injured more than a dozen in a mass shooting at Marjory Stoneman Douglas High School in Parkland, Florida, on Feb. 14 that year. Citi said at the time that it would require clients to "adhere to these best practices: (1) they don't sell firearms to someone who hasn't passed a background check, (2) they restrict the sale of firearms for individuals under 21 years of age, and (3) they don't sell bump stocks or high-capacity magazines." The bank's policy applied only to its business clients, ranging from small businesses to Fortune 500-sized companies. It did not restrict how Citi's personal banking customers used their cards. Citi says it provides banking services to more than 19,000 companies globally. "As a society, we all know that something needs to change. And as a company, we feel we must do our part," Citigroup Executive Vice President of Enterprise Services and Public Affairs Ed Skyler said in 2018. But Skyler says things have changed. "The policy was intended to promote the adoption of best sales practices as prudent risk management and didn't address the manufacturing of firearms," he wrote Tuesday in a blog post announcing that Citi "will no longer have a specific policy as it relates to firearms." "Many retailers have been following these best practices," Skyler wrote, "and we hope communities and lawmakers will continue to seek out ways to prevent the tragic consequences of gun violence." A spokesperson for the March for Our Lives, a gun-control advocacy group organized in part by students who survived the Parkland massacre, didn't immediately respond to a request for comment. The change at Citigroup comes amid broader political pressure over so-called "debanking," with influential tech leaders and right-wing officials having alleged in recent years that the Biden administration was improperly blocking certain people, including cryptocurrency proponents and conservatives, from banking services. That argument hasn't gone away since President Donald Trump returned to the White House; he confronted the CEOs of America's two largest banks — Bank of America and JPMorgan Chase — with similar complaints at the World Economic Forum in Davos, Switzerland, earlier this year. Both banks said at the time that they would never close an account for political reasons. Bank of America said, "We welcome conservatives and have no political litmus test." Citi said Tuesday that it would "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. This will codify what we've long practiced, and we will continue to conduct trainings to ensure compliance." Banking executives have repeatedly said they terminate banking services only when there are issues with anti-money laundering laws or know-your-client regulations, not because of political affiliations. "We bank 70 million American consumers so our bank is open to everybody," Bank of American CEO Brian Moynihan later said. This article was originally published on Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
CNBC
3 days ago
- Business
- CNBC
Citigroup lifts banking curbs on gun makers and sellers
Citigroup on Tuesday ended a seven-year-old policy restricting how it provides banking services to firearm manufacturers, sellers and resellers. The bank launched the policy in March 2018 after a teenage gunman killed 17 people and injured more than a dozen in a mass shooting at Marjory Stoneman Douglas High School in Parkland, Florida, on Feb. 14 that year. Citi said at the time that it would require clients to "adhere to these best practices: (1) they don't sell firearms to someone who hasn't passed a background check, (2) they restrict the sale of firearms for individuals under 21 years of age, and (3) they don't sell bump stocks or high-capacity magazines." The bank's policy applied only to its business clients, ranging from small businesses to Fortune 500-sized companies. It did not restrict how Citi's personal banking customers used their cards. Citi says it provides banking services to more than 19,000 companies globally. "As a society, we all know that something needs to change. And as a company, we feel we must do our part," Citigroup Executive Vice President of Enterprise Services and Public Affairs Ed Skyler said in 2018. But Skyler says things have changed. "The policy was intended to promote the adoption of best sales practices as prudent risk management and didn't address the manufacturing of firearms," he wrote Tuesday in a blog post announcing that Citi "will no longer have a specific policy as it relates to firearms." "Many retailers have been following these best practices," Skyler wrote, "and we hope communities and lawmakers will continue to seek out ways to prevent the tragic consequences of gun violence." A spokesperson for the March for Our Lives, a gun-control advocacy group organized in part by students who survived the Parkland massacre, didn't immediately respond to a request for comment. The change at Citigroup comes amid broader political pressure over so-called "debanking," with influential tech leaders and right-wing officials having alleged in recent years that the Biden administration was improperly blocking certain people, including cryptocurrency proponents and conservatives, from banking services. That argument hasn't gone away since President Donald Trump returned to the White House; he confronted the CEOs of America's two largest banks — Bank of America and JPMorgan Chase — with similar complaints at the World Economic Forum in Davos, Switzerland, earlier this year. Both banks said at the time that they would never close an account for political reasons. Bank of America said, "We welcome conservatives and have no political litmus test." Citi said Tuesday that it would "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. This will codify what we've long practiced, and we will continue to conduct trainings to ensure compliance." Banking executives have repeatedly said they terminate banking services only when there are issues with anti-money laundering laws or know-your-client regulations, not because of political affiliations. "We bank 70 million American consumers so our bank is open to everybody," Bank of American CEO Brian Moynihan later said.
