Social justice bankers are the latest tool used by radical progressives to apply pressure against conservative government principles. As insane as the notion may seem, some of the largest banks in America, including Bank of America and Wells Fargo, are denying services to companies who provide services to certain government agencies, most notably Immigration and Customs Enforcement (ICE). Five Republican Senators have introduced a bill that would punish banks who deny law-abiding, creditworthy companies simply because they contract with the U.S. government.
Senators Marco Rubio, Ted Cruz, Marsha Blackburn, Tom Cotton, and Kevin Cramer introduced the bill that would amend FDIC laws. The Financial Defense of Industrial Contractors (FDIC) Act, symbolically having the same initials as the Federal Deposit Insurance Corporation that insures the money we keep in banks, would withdraw the issued insurance of banks that deny services based solely on affiliation with government agencies.
“It’s deeply concerning to see our country’s largest banks caving to the radical Left’s social agenda,” Cruz said. “Banks should be making decisions that are based on research and facts, not political pressure. I support our ICE agents and the contractors who work for them. They are risking their lives every day to keep this country safe. They deserve better.”
Six major banks operating in the United States—Wells Fargo, JP Morgan, Bank of America, BNP Paribas, Barclays, and SunTrust—have announced they will no longer provide depository services to contractors which operate facilities on behalf of ICE. They’re acting on prompting from Democratic lawmakers, most notably state lawmakers in California, who are using the banks’ clout to damage those who contract with ICE and dissuade future cooperation from other companies.
“Some of our nation’s largest banks have decided to cater to the radical left’s ‘woke’ agenda by abusing their systemic influence in our economy to deprive law-abiding federal contractors of banking services critical to their business,” Rubio said. “Banks have a right to deny funds to certain businesses, but they shouldn’t enjoy taxpayer-provided guarantees if they are undermining the public policy of the United States.”
This bill was handled in the most appropriate fashion possible, staying true to limited-government federalism while applying the ultimate pressure to the banks. It would be catastrophic for these banks to lose their FDIC membership. The bill still allows for autonomy without government interference, opting to punish non-adherence instead of mandating adherence. They can still choose to do as they please as private corporations, but they cannot expect the U.S. government to cover them when they’re attempting to hinder one of the most crucial law enforcement agencies at the federal level.
“Some large banks are weaponizing their essential position in the economy to discriminate against companies who assist our immigration law enforcement operations,” Cramer said. “If they would like the right to deny service to certain companies, the federal government should have the right to withdraw its taxpayer-funded guarantees.”
These social justice bankers are welcome to engage in Cultural Marxism. But they cannot subvert law-abiding, creditworthy companies and still expect the federal government to cover their losses.