Megabanks that have moved to curb business with gun companies are running into powerful resistance in the person of Senate Banking Committee Chairman Mike Crapo.
The Idaho Republican assailed Bank of America Wednesday for its announcement that it would stop lending to gun manufacturers that make versions of the AR-15.
“It is deeply concerning to me when large national banks like Bank of America, which receive significant forms of government support and benefits, use their market power to manage social policy by withholding access to credit to customers and companies they disfavor,” Crapo told CEO Brian Moynihan in a letter.
Crapo sent a similar letter a few days ago to Citigroup CEO Michael Corbat. Citigroup has said that it will pull back from business with companies that sell guns to people under age 21 or who haven’t passed background checks.
Both companies announced the policies following the school massacre in Parkland, Fla. Since then, businesses have been under pressure to distance themselves from the gun industry, including from the state of New York.
In the case of banks, though, doing so risks upsetting congressional Republicans, who in other circumstances often defend them.
Last week, Crapo and Sen. John Kennedy, R-La., accosted Federal Reserve vice chairman for supervision Randal Quarles over the possibility of banks cutting off credit to gun makers.
