Bank Discrimination Based on Politics Considered Illegal
Greg Jarrett, a legal analyst, discussed with Lawrence Jones the legality of banks discriminating based on political or religious beliefs. Jarrett emphasized that both federal and state laws are in place to protect consumers, stating that closing accounts due to these beliefs is illegal unless there’s evidence of criminal activity. He cautioned banks about potential civil enforcement actions, including hefty fines, directed at them and their executives.
Recently, Citizens Bank has announced plans to cut financial ties with two of the largest private prison firms in the U.S. This decision comes after months of protest concerning the banks’ connections to companies operating ICE detention centers. Interestingly, the bank insists that the decision stemmed from changing business conditions rather than any political pressure.
Based in Rhode Island, Citizens Bank revealed it would terminate its lending agreements with CoreCivic and GEO Group, both known for running immigrant detention centers under federal contracts. Activists, who have been encouraging local governments and customers to sever relationships with these banks, celebrated this as a significant win, while some citizens argued that the federal government’s acquisition plans were more about altering financial needs than political motives.
In a filing on July 17, Citizens Bank explained, “Over the last year, we have faced scrutiny from various activist organizations concerning our affiliations with CoreCivic and GEO Group.” The bank had previously refrained from commenting due to commitments to customer privacy but felt it was time to address the situation due to recent developments.
They pointed out that GEO has been a customer since 2018, with CoreCivic being a partner since 2011. These companies not only operate prisons under federal and state service contracts but also own several facilities.
Citizens Bank clarified its rationale to end ties with these private prison operators was based on recent federal acquisitions that altered the companies’ capital requirements and the way they manage finances. They specifically mentioned that these changes were not linked to any issues regarding either company or their business ethics.
The bank expressed some disappointment regarding the activist portrayal of the situation, indicating that it doesn’t reflect their commitment to the communities they serve. They emphasized a dedication to supporting their customers, colleagues, and the broader community.
In a statement, a CoreCivic representative described the company as a reputable organization serving various government levels for over 40 years, regardless of political administration. They asserted their financial status is currently robust, valuing their diverse range of financial partners.
Following this, Citizens Bank highlighted its community involvement, mentioning the support of numerous nonprofits catering to immigrant populations, thousands of employee volunteer hours logged, and substantial community development loans aimed at affordable housing and local economic growth.
Fox News Digital reached out to Citizens Bank and received a reference to their earlier statement while also trying to connect with ICE and GEO Group for additional comments.
