Louisiana Cuts CitiBank, B of A Out of $600 Million Financing Deal Over Anti-Gun Policies

Louisiana State Bond Commission CitiBank Bank of America

courtesy theadvocate.com

As we noted back in April, John Schroder, Treasurer of Louisiana objected to two big money center banks’ newly announced anti-gun policies. He let it be known that because of their policies refusing to do business with companies that make “assault rifles” or “high-capacity” magazines. It was all part of the post-Parkland conspicuous moral preening that saw other corporate giants like Enterprise Rent-A-Car, Delta Airlines, Symantec and others drop their deals with the NRA.

At the time, Louisiana Treasurer Schroder said,

“Do I as your state treasurer want to do business with companies that impose these kinds of policies?” said Treasurer John Schroder, the Republican who chairs the (state bond) commission. “And the answer to me was clearly no.”

Democrat Governor Jon Bel Edwards criticized what he called Schroder’s “political posturing.” But as the process of arranging the underwriting for Louisiana’s Grant Anticipation Revenue Vehicle Bonds for road and bridge improvements played out, opponents to giving the megabanks any piece of the business gathered supporters. Now . . .

The State Bond Commission voted, 7-6, to exclude CitiGroup and Bank of America from its negotiations of a $600 million deal because the banks refuse to finance certain gun retailers.

“You’re in the banking business. Why have you decided to enter into the policy-making business?” Rep. Blake Miguez, R-Erath, asked the CitiGroup bank representative at Thursday’s commission meeting.

An excellent question, Rep. Miquez. Of course, we know the answer. They believe that the benefit from the positive press coverage of their socially conscious stance in opposition to “weapons of war” outweighs the costs of alienating the nation’s 100+ million gun owners and a large number of their customers.

Nearly 20 banks applied to underwrite the bonds, and the winning bank will act as an agent throughout negotiations. Some commission members argued that barring two of the nation’s largest banks from the process could mean higher interest rates and more expensive fees.

“There’s nothing we discussed today that somehow maximizes the state’s savings or puts us in a better light,” Sen. Eric LaFleur, D-Ville Platte, said.

“You can’t put a price tag on the second amendment,” Miguez said.

This, of course, is the only way to fight moves like those made by Citi, B of A, or any of the other corporate giants. Their anti-gun policies have to be seen as having a resulting cost that affects their bottom lines. Louisiana’s move, on its own, is relatively small and won’t make much of a dent in either bank’s profit numbers. But it’s a start.

comments

  1. avatar Cruzo1981 says:

    Bravo, LA! Bravo!

  2. avatar Rusty Chains says:

    Dan, love the way you played off the anti-gun catch phrase ” It’s a good start!”

  3. avatar DerryM says:

    Hopefully, other States will adopt Louisiana’s lead on this. Until States and the People fight back, Financial Institutions and Businesses will continue to impose their political agendas, which are fundamentally against the American Constitutional Republic and the Liberty it stands for.

  4. avatar Ed Rogers says:

    Bravo!

  5. avatar former water walker says:

    Haw haw! Out of Louisiana too!😄

    1. avatar TexTed says:

      Beat me to it, my first response was to add the Nelson video again.

  6. avatar m. says:

    financial-ahs should consider that…a lot of things can happen to dog s**t

    1. avatar Rad Man says:

      It can get stepped on and squashed, scraped up with a shovel, or dried up and blown away in the wind.

  7. avatar Fit2Btyed says:

    He who rolls a rock uphill will have it roll back over him. I cut ties with BofA years ago over their insane extra charges and fees. I swore never to use them again. Push em back, push em back, waaaaaaay back.

  8. avatar GunnyGene says:

    Lesson for the banks: Don’t piss off cajun country.

  9. avatar RA-15 says:

    Louisiana rocks !!

  10. avatar Baldwin says:

    …“You can’t put a price tag on the second amendment”…Actually we can. The more important question is, are we willing and determined to pay the price (in treasure and, ultimately, in blood) necessary to restore the full force of our right(s)?

    1. avatar Green Mtn. Boy says:

      I often wonder the outcome of a good game of Cowboys or in this case Cajuns and Leftist’s.

  11. avatar Green Mtn. Boy says:

    Beyond time to fight fire with fire so to speak and put back upon the Marxist financial institutions what they with impunity have foisted on Americans.

  12. avatar GS650G says:

    The bat swings both ways boys.

  13. avatar BLAMMO says:

    Well, states like NY and CA certainly have more political and financial clout than a state like LA. And then again, there are more free states.

    Fact is, politics is always bad business, no matter what the politics are. Business is business. Stick to your knitting, stay OUT of politics and stay IN business.

  14. avatar Tom in Oregon says:

    Blake Miguez for president.

  15. avatar Seizure doc says:

    Great for LA. Does any know what the text acronym TGFM stands for ?

    1. avatar Dyspeptic Gunsmith says:

      Well, if it means the same thing as it did when I travelled extensively through the South in the 80’s, it means

      “Thank God for Mississippi.”

    2. avatar VerendusAudeo says:

      It stands for ‘Thank God for Mississippi’. Basically, it means, “Our state may have its problems, but we’ll never be as bad as Mississippi”.

      1. avatar Seizure doc says:

        Give those men a cigar. Maybe some day us Cajuns will not need to use that.
        Geaux Tigers, and our elected representatives !

  16. avatar SouthernShooter says:

    I live in LA and applaud this action!

    1. avatar Kountryboy says:

      I also live in LA and am glad to see them take this stance. Hopefully others will soon follow.

  17. avatar drunkEODguy says:

    My adopted state sure beats IL’s bullshit

  18. avatar Nanashi says:

    Good. Though the bit in Georgia recently means I still need to make sure John Schroder doesn’t have a long history of anti-gun moves.

  19. avatar VerendusAudeo says:

    Is this really a bad thing for BofA or Citigroup? Hey! We’re mad at you, so we won’t let you take on our failing state’s debt!

    1. That’s not what this deal is about. Louisiana is undertaking a $600 million project to upgrade roads and bridges. Banks are bidding to underwrite revenue anticipation bonds and manage that process.

      By being excluded from consideration, Citi and BofA are missing out on the opportunity to earn some significant fees. There’s not a lot of risk in a deal like this.

    2. avatar Bigus Dickus says:

      Failing state? I think you just confused Louisiana with Illinois.

  20. avatar JF says:

    That is why I only buy my handgun ammunition with my BofA account.

  21. avatar sound awake says:

    fuck. them.

    theyre assholes and all should have been thrown in jail after 2008

  22. avatar Matthew the Oilman says:

    Jeff Landry , John Kennedy and some other Congress critters were all considering a run at the Governor’s office.. At this point I would say Jeff begin your attack run!

  23. avatar Maps Bam says:

    Barely passed. Now do us proud and vote the 6 voters out of office.

  24. avatar EnDangerEd says:

    I’m closing out my Citi card asap, might only be one drop in the bucket but you can drown in 2 teaspoons of water…. Hope that they eventually choke on it.

  25. avatar Tony Shannon says:

    Boycott Boycott!! I have been done with Delta Airlines and now I will keep in my mind Enterprise car rental and Citibank. Also ESPN and the NFL are on my “Im done with you” list.

  26. avatar Aleric says:

    This was another of Bryan Moynihan’s decisions, I worked at B of A and he and Ken Lewis were the Brainiac’s that thought Country Wide and Merrill Lynch were good deals. They took the stock from $43 to $3 a share. The same man who thought it was a good idea to give credit cards to ILLEGAL INVADERS.

  27. avatar Alan says:

    Couldn’t happen to a more deserving collection of business-banking dirt bags. Wonder as to what the chances of criminal prosecution of the offending parties, the banks and their top level managements might be.

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