Armstrong Economics Blog/Politics
Re-Posted Jun 20, 2018 by Martin Armstrong
Citigroup has issued a press release back in March stating that it will penalize banking clients who engage in gun sales even though they comply with federal, state, and local laws. Citigroup’s new policy tells businesses what kind of firearms and accessories they can stock in their stores, and who they can sell them to. This sort of bank interference in commerce and discrimination is actually illegal in itself. Under the FDIC rules, a bank may NOT under any circumstances discriminate against any business or person without just cause.
Under FDIC rules, it is “[u]nlawful discriminatory practices range from the overt to the very subtle. The motivations behind such practices range from prejudice to simple ignorance of the law. Violations generally fall into two categories: technical and substantive. Within the category of technical violations, some may be procedural, such as not having the Equal Housing Lender poster on display. However, technical violations, especially of a repetitive nature, can be indicators that possible substantive violations may also exist. Substantive violations involve actual discrimination on a prohibited basis, either disparate treatment or disparate impact.”
In this case, Citigroup is clearly engaging in political discrimination which goes all the way to violate the Second Amendment of the Constitution. It is not up to Citigroup to rewrite the Constitution or the prevailing laws. They are in effect violating the very foundation of a democratic structure and moving into a position of a corporate rough dictatorship. They can easily just as well discriminate and say everyone who sells condoms or birth control pills they will refuse to lend to because they believe that there should be no birth control. Or they could refuse to lend money to anyone who is a Muslim claiming they might be connected to some terrorist act.
This policy of Citigroup is flat outright illegal. Of course, the federal court in New York City rules in favor of banks. Any suit must be brought outside of New York where a violation takes place.