Citigroup has announced the end of a policy that had restricted how it provided banking services to firearm manufacturers, sellers, and resellers. The decision marks the conclusion of a seven-year policy introduced after the 2018 mass shooting at Marjory Stoneman Douglas High School in Parkland, Florida, which resulted in the deaths of 17 people.
Background of Citigroup’s Policy
In response to the Parkland shooting, Citigroup implemented a policy in March 2018, requiring its business clients to adhere to specific sales practices. These included ensuring that firearms were not sold to individuals who hadn’t passed a background check, restricting sales to those under 21, and prohibiting the sale of bump stocks and high-capacity magazines. The policy applied to Citi’s business clients, including small businesses and large corporations, but did not affect personal banking customers.
Why Citigroup Changed Its Stance
Ed Skyler, Citigroup’s Executive Vice President of Enterprise Services and Public Affairs, explained the company’s decision to end the policy, acknowledging that while the policy was designed to encourage responsible sales practices, it did not address the manufacturing of firearms. He stated that many retailers had already adopted these best practices, and now, with the policy’s expiration, Citi would no longer enforce specific restrictions related to firearms.
Political and Social Reactions
The decision has sparked a backlash from gun-control advocacy groups. March for Our Lives, the movement founded by students who survived the Parkland shooting, criticized Citigroup’s shift, accusing the bank of prioritizing political appeasement over protecting lives. Executive Director Jackie Corin expressed frustration, stating that the company’s earlier policy had shown courage in the face of tragedy, but now Citi was compromising on its commitment to preventing gun violence.
White House and Right-Wing Support
On the other hand, White House spokesman Harrison Fields praised Citi’s decision, framing it as part of a broader political trend under President Donald Trump’s administration. He welcomed what he called “common sense” and applauded Citigroup for ending its policy against gun owners, positioning the move as a victory for Second Amendment rights.
Banking Policy Adjustments
As part of the policy shift, Citigroup also updated its Code of Conduct and Global Financial Access Policy, stating that it would no longer discriminate based on political affiliation, aligning its stance with non-discrimination policies regarding race and religion. The bank emphasized that the decision was in line with its long-standing practice of not discriminating against customers based on political beliefs or affiliations.
Industry Context
The change comes amid broader political debates over “debanking” in the U.S., with critics alleging that certain groups, have been unfairly denied banking services. These discussions have intensified with political leaders like President Trump criticizing major banks for allegedly stifling free speech and political expression.
Market Impact and Shareholder Concerns
While Citigroup’s decision has stirred political debate, the banking giant is focusing on ensuring that its banking policies remain inclusive and non-discriminatory. Citi’s executives have reaffirmed that they only terminate banking services when there are legal compliance issues, such as violations of anti-money laundering laws or know-your-client regulations.
