PA Bill Number: HB829
Title: In preliminary provisions, further providing for definitions;
Description: An Act amending the act of April 12, 1951 (P.L.90, No.21), known as the Liquor Code, in preliminary provisions, further providing for definitions;
Last Action: Signed in House
Last Action Date: Jul 3, 2024
Republican seeks to prohibit federal contracts to banks that cut off gunmakers :: 10/03/2018
Sen. John Kennedy R-La., introduced legislation Tuesday to prohibit federal contracts with banks that end business with other lawful businesses over social policy.
The topic became a hot button issue last spring when Bank of America and Citigroup announced that they would end banking relationships with gun manufacturers or retailers that sold certain semi-automatic weapons similar to ones used in mass shootings of civilians.
“It’s very simple, it just says that we can’t issue contracts to banks that decide they want to make social policy,” Kennedy told the Washington Examiner.
The Louisiana Republican argued that since banks receive certain benefits from the federal government, including but not limited to 2008’s bailout of the financial industry, the federal government shouldn’t contract with banks that take a position on flashpoint social issues.
“I just believe that we don’t need red banks and we don’t need blue banks, we need safe banks, and that’s what Citigroup and Bank of America need to be worrying about,” said Kennedy. “Not going belly-up in the next recession and having to come whine to the American people to bail them out. And I think that’s a full time job.”
In an emailed statement, a Citi spokesperson responded that the bank, "adopted this policy because we believe it is a positive and balanced step to promote gun safety without undermining free markets or Second Amendment rights." The spokesperson added, "It is disappointing that some are attempting to politicize the competitive process through which we bid to provide critical financial services to the government as a result."
