A group of Republican senators, led by Marco Rubio (R-FL), are introducing legislation that targets big banks that deny financial services to contractors who do business with U.S. Immigration and Customs Enforcement (ICE). The proposed legislation identifies six banks that, rather than providing financial services for customers, have chosen instead to engage in social justice warriorism by attempting to cancel contractors who do business with ICE.
Executives for Wells Fargo, JP Morgan, Bank of America, BNP Paribas, Barclays, and SunTrust have said they will no longer provide depository services to federal contractors with ICE for no other reason than their opposition to national immigration law. These six banks alone control over $7 trillion in combined assets.
Under Rubio’s legislation — which Senators Tom Cotton (R-AR), Marsha Blackburn (R-TN), and Kevin Cramer (R-ND) are co-sponsoring — big banks with assets over $50 billion would have their Federal Deposit Insurance Corporation (FDIC) insurance removed if they refuse to provide services to federal contractors.
Should the provision be violated, the FDIC would begin terminating the bank’s deposit insurance.
“Banks have a right to deny funds to whichever businesses they choose, but they should not be able to deny funds to businesses carrying out federal policy and continue to receive taxpayer money,” a spokesperson for Rubio said.
"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," Sen. Rubio said in a statement. "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."