In a move that will help firearms-related companies, President Donald Trump has signed a new executive order that will keep banks and big financial institutions from discriminating against business seen by some as politically correct.
The president signed the Executive Order Guaranteeing Free and Fair Banking for All Americans on August 7. The order will help stem the tide of banks and other financial entities discriminating against those in the firearms industry, despite the fact that they produce legal products sold in a lawful manner.
“Financial institutions have engaged in unacceptable practices to restrict law-abiding individuals’ and businesses’ access to financial services on the basis of political or religious beliefs or lawful business activities,” the executive order states. “Bank regulators have used supervisory scrutiny and other influence over regulated banks to direct or otherwise encourage politicized or unlawful debanking activities.”
As an example, President Trump cited in the executive order “Operation Chokepoint,” which denied essential banking service to some in the firearms industry based on politics.
“’Operation Chokepoint,’ for example, was a well-documented and systemic means by which Federal regulators pushed banks to minimize their involvement with individuals and companies engaged in lawful activities and industries disfavored by regulators based on factors other than individualized, objective, risk-based standards,” the order states
Among other things, the executive order directs that within 180 days, each appropriate Federal banking regulator must, to the greatest extent permitted by law, remove the use of reputation risk or equivalent concepts that could result in politicized or unlawful debanking, as well as any other considerations that could be used to engage in such debanking, from their guidance documents, manuals, and other materials (other than existing regulations or other materials requiring notice-and-comment rulemaking) used to regulate or examine financial institutions over which they have jurisdiction.
One pro-gun group that was thrilled with President Trump’s latest order was the National Shooting Sports Foundation (NSSF), the gun industry trade group.
“President Trump is yet again delivering on his promise to protect Americans’ rights,” Lawrence G. Keane, NSSF senior vice president and general counsel, said in a news release about the executive order. “This time by ensuring that banks cannot discriminate against firearm-related businesses based on unaccountable corporate executives trying to impose a ‘woke’ gun control agenda beyond what the law requires.”
Keane added that American business, and particularly those in the firearms industry, Must have fair access to essential banking services that are based on an objective criteria and creditworthiness.
“Politics should not enter into a bank’s lending decision,” Keane concluded. “NSSF is encouraged that President Trump is today putting an end to ‘woke banking.’”