Citi rescinds coverage that restricted dealings with sellers of firearms | USAEMALL.com

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Citigroup has revoked a policy curbing its dealings with companies that sell firearms in the latest sign of how corporate America is shifting its approach on major political issues under pressure from Donald Trump. 

The Wall Street bank on Tuesday changed its code of conduct to state that it “does not discriminate on the basis of political affiliation” and revoked a rule it had put in place in 2018 to restrict its relationship with firearms sellers.

Citi’s decision to remove its firearms policy represents a shift on an issue that has long been a lightning rod in American politics and culture.

Trump has said the government will review gun policies made during his predecessor Joe Biden’s administration that may infringe on Americans’ constitutional rights to possess weapons. He has also been a strong critic of corporate policies that support social causes.

New York-based Citi had implemented the policy in 2018 after the Parkland school shooting in Florida, which left 17 people dead in one of the worst incidents of its kind in US history.

The group said at the time that the policy was put in place because “as a society, we all know that something needs to change. And as a company, we feel we must do our part”.

Mike Corbat, who was then Citi’s chief executive, also touted the policy in the group’s 2018 annual shareholder meeting, saying it was “intended to preserve the rights of responsible gun owners like myself, while relying on best sales practices to keep firearms out of the wrong hands”.

The policy required clients and partners of the bank not to sell firearms to people under the age of 21 or to those who had not passed a background check. It also required that dealers not sell bump stocks or high-capacity magazines.

Citi also said it would change its policies to “clearly state that we do not discriminate on the basis of political affiliation in the same way we are clear that we do not discriminate on the basis of other traits such as race and religion”. It added that “this will codify what we’ve long practised”.

The change comes after Trump has claimed that some US banks had declined to provide services based on political affiliation.

Citi cited “concerns that are being raised regarding ‘fair access’ to banking services” and “regulatory developments, recent executive orders and federal legislation” for its decision to change its policies.

It said the rules regarding firearms had been “intended to promote the adoption of best sales practices as prudent risk management” but that it “didn’t address the manufacturing of firearms”.

“Many retailers have been following these best practices, and we hope communities and lawmakers will continue to seek out ways to prevent the tragic consequences of gun violence,” Citi said.