Gun store owners say continuing pressure from the Department of Justice (DOJ) and a Federal Deposit Insurance Corporation (FDIC) “high risk” rating are shrinking the pool of banks they can use for their businesses.
In 2011, the FDIC listed firearms and ammunition sellers as “high risk.” It designated “pornography” and “tobacco sales” the same. Since then, Obama’s DOJ has applied pressure to banks, leading some to cut ties with gun stores or freeze the assets of firearms-related businesses.
On May 18, The Washington Times listed gun stores and firearms-related businesses in Miami, Florida; Henderson, Nevada; and Phoenix, Arizona, that have all seen their bank accounts “frozen” or dropped altogether as a result.
Banks are reacting to DOJ hyper-scrutiny by severing business relationships with anything that might be viewed as “high risk,” even if the businesses with which they are cutting ties are legal and legitimate.
In April 2013, Breitbart News reported that Bank of America froze the assets of Scottsdale, Arizona-based American Spirit Arms because the company allowed customers to order guns over the Internet without conducting a background check. What Bank of America failed to note is that Spirit Arms complies with the law by shipping those guns directly to Federal Firearm License holders, who then conduct background checks before allowing customers to take possession of them.
GE Capital soon followed Bank of America’s lead by announcing that it would no longer finance gun purchases or gun businesses.
According to the Times, gun businesses have responded to these things by saying, “The Obama administration is trying to put them out of business with regulations and investigations that bypass Congress and choke off their lines of credit, freeze their assets, and prohibit online sales.”
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