Tag Archives: Bank of America

Reality Check: Major Corporations Influencing Gun Control?

Major institutions across the U.S. are taking a stand in the debate over gun control.

Many gun control advocates believe this is a great move by American corporations. But what does it mean when corporations are punishing customers for behavior that is not illegal? Could these businesses become moral police?

This is a Reality Check you won’t get anywhere else.

In response to the latest mass shooting event in Parkland, Florida, major corporations and banks are now instituting their own gun control policies. Let’s first look at how banks are getting involved.

Bank of America announced just 10 days after the parkland shooting that it would begin conversations with its customers who manufacture guns to, “examine what we can do to help end the tragedy of mass shootings.”

Then in mid-March Citigroup revealed it would institute its own restrictions on gun manufacturer clients. The bank has since banned its business customers from selling guns to anyone under 21, and from selling high-capacity magazines and bump stocks altogether.

And now, Bank of America will no longer lend to gun manufacturers, including current loan customers Vista Outdoors and Remington.

While banks are private institutions, there are questions here about why banks would not lend to companies that are not doing anything illegal, but that the bank’s executives simply don’t agree with.

According to Bank of America’s annual shareholder meeting in April, a shareholder named Justin Danhof, the director of the free enterprise project, asked CEO Brian Moynihan how much business the bank was sending away, noting that Warren Buffett said he wouldn’t make a similar move in his business.

In response, Moynihan said that the choice was in response to those associated with the bank who were impacted by the parkland shooting. Without citing any figures, Moynihan said, “this comes from our teammates saying we have to help.”

Yet Bank of America, the second largest bank in the U.S., has made a unilateral decision that imposes a political view on its employees and shareholders.

Remember, these banks have trillions of dollars in assets. Bank of America alone serves 3 million small business owners in the U.S. and because their policies affect so many people, these banks can sway policy in our country without a single vote cast.

Now, what about the major retailers in the U.S. stepping into the gun control debate?

According to the New York Times, Dick’s Sporting Goods and Walmart, two of the nation’s leading gun sellers, have opted to further restrict customers by raising the age to purchase any firearm to 21.

Dick’s Sporting Goods has removed what it calls assault-style weapons from all of its stores’ shelves.

And Walmart went even further. The retailer will stop selling toy and air guns that resemble assault-style guns.

The actions these major corporations have taken to address gun control highlights the power to punish customers for legal behavior.

But can’t customers vote with their dollar and choose to bank or buy products with a company that highlights their values?

Yes you can vote with your dollar, but it’s very hard when so few corporations are so large and impose their will. And that’s what you need to know.

The problem here is when major, private companies have centralized control. In a free market, corporations should be able to do what they want. If you don’t like it, you support a competitor.

But that’s not the system we have in the U.S.

Instead, it’s a system where cronyism has allowed a few large corporations to have massive control, and there are huge hurdles to anyone trying to create an alternative.

It is why, as I have said before, the decentralization of everything is what is so necessary in virtually every industry. Because it is decentralization that allows freedom.

That’s Reality Check, let’s talk about it right now on Facebook and Twitter.

Bank of America Stops Lending to Several Gun Manufacturers, Strengthening Case for Crypto

(Dash Force News) Bank of America will cease providing lending services to companies manufacturing certain types of firearms.

As reported by Bloomberg, Bank of America, the second-largest bank in the US, will no longer lend to firearms manufacturers involved in selling semi-automatic rifles deemed “military-style” to the civilian populace. This comes after a wave of pressure on banks and payment providers to restrict their services provided to firearms manufacturers in the wake of recent highly-publicized shootings. Increasing financial pressure could cause manufacturers to cease production of controversial items or risk harm to their business.

Centralized payment systems have a long history of shutting out controversial projects

Payment companies and the banking industry, with centralized control over services, have long posed problems for businesses and causes that have attracted controversy over the years. PayPal froze the accounts of supporters of the Bundy Ranch, an agricultural community in the US which was engaged in a dispute with the federal government resulting in an armed standoff. Wikileaks famously also had all its payment providers shut down due to is exposure of government corruption, prompting them to seek cryptocurrency as a way to get around the ban.

Dash is making strong inroads in censored industries like marijuana and alternative media

As the top cryptocurrency for payments, Dash is focused on offering better and censorship-resistant money, which leads to applications in traditionally underserved industries. Independent journalist Ben Swann came back after a year of censorship thanks to an exclusive sponsorship with Dash. Dash point-of-sale and business solution Alt Thirty Six aims to service the legal cannabis industry, which at present is cash-only due to banking restrictions. Finally, Dash is taking off in Venezuela, which has experienced currency issues and regulatory barriers, with over a hundred businesses accepting it for payments as of time of writing.

The firearms industry would be wise to explore Dash for payments seeing present trends of hostility from banks.

Bank of America Admits Threat Presented by Cryptocurrency

One of the largest banks in the United States has acknowledged that cryptocurrencies could pose a threat to its business model. In Bank of America’s new annual report filed with the U.S. Securities and Exchange Commission (SEC), the corporation largely reflected internally about a number of economic, geopolitical, and operational risks faced.

One of those stated risks is surrounding the increased adaptation of cryptocurrencies, which could have negative effects on the corporation’s earning potential.

In addition, technological advances and the growth of e-commerce have made it easier for non-depository institutions to offer products and services that traditionally were banking products, and for financial institutions to compete with technology companies in providing electronic and internet-based financial solutions including electronic securities trading, marketplace lending and payment processing. Further, clients may choose to conduct business with other market participants who engage in business or offer products in areas we deem speculative or risky, such as cryptocurrencies. Increased competition may negatively affect our earnings by creating pressure to lower prices or credit standards on our products and services requiring additional investment to improve the quality and delivery of our technology and/or reducing our market share, or affecting the willingness of our clients to do business with us.

Increased adaptation of cryptocurrencies also had Bank of America admitting that it may need to make “substantial expenditures” to compete with these rising technologies:

In addition, the widespread adoption of new technologies, including internet services, cryptocurrencies and payment systems, could require substantial expenditures to modify or adapt our existing products and services as we grow and develop our internet banking and mobile banking channel strategies in addition to remote connectivity solutions.

Interestingly, Bank of America might have already taken action to help counter these technologies by banning cryptocurrency transactions on their credit cards.

[RELATED: Arizona, Colorado, and Wyoming Present Legislation Supporting Cryptocurrency]

Additionally, the document stated concerns besides those directly affecting earning potential; they noted that emerging cryptocurrencies could impact Bank of America’s compliance with anti-money laundering regulations:

In addition to non-U.S. legislation, our international operations are also subject to U.S. legal requirements. For example, our international operations are subject to U.S. laws on foreign corrupt practices, the Office of Foreign Assets Control, know-your-customer requirements and anti-money laundering regulations. Emerging technologies, such as cryptocurrencies, could limit our ability to track the movement of funds. Our ability to comply with these laws is dependent on our ability to improve detection and reporting capabilities and reduce variation in control processes and oversight accountability.

Even though cryptocurrencies were a small mention within the entire report, its brief discussion indicated that the company is both aware of and reacting to the further potential impacts of cryptocurrency.

In recent years, Bank of America has clearly shown its ambition in patenting blockchain technology; according to a January Bloomberg report, Bank of America “has applied for or received at least 43 patents for blockchain, the ledger technology used for verifying and recording transactions that’s at the heart of virtual currencies. It is the largest number among major banks and technology companies, according to a study by EnvisionIP, a New York-based law firm that specializes in analyses of intellectual property.”